Monday, January 19, 2015
An umbrella insurance policy can be a wonderful asset to your insurance package if and when claims come in. Adding an umbrella policy to your current homeowners policy or business policy can increase your limits of liability for mostly any situation. That means if your standard policy is exhausted due to the limits set forth on it, your umbrella policy will come in and cover the rest of the claim.
Think of an umbrella insurance policy as an actual umbrella. Sure, your standard insurance policy can handle a claim downpour, but only up to the limits you have set on it. Opening the umbrella over your standard insurance will help take care of the excess.
There are a couple of myths about umbrella insurance out there that we would love to clear up.
- Umbrella policies are only for the rich – Nope. Umbrella insurance policies are for anyone looking for additional coverage that standard insurance policies do not offer. In fact, adding an umbrella to your homeowners insurance policy can be a very smart move. Some mortgage lenders actually require it if you have a swimming pool or other high-liability risk items at your home.
- Umbrella policies have very high premiums – Also not true. Usually the premiums are very minimal. Your standard homeowners or business policy will take on the majority of the claims, so your umbrella policy does not need to have a large premium in order to be effective. For about $200 a year, you could have a $1,000,000 umbrella policy in place to help protect your finances from claims that exceed your standard policy’s limits.
If you think an umbrella insurance policy would be a good idea for your home or business, please do not hesitate to call us at 888-827-0930 for more information. We are here to help.