Umbrella Policy: What is it, and why should you have one?

An Umbrella Policy, sometimes called a personal liability policy or (PLP),  is an indispensable type of personal liability insurance when you find yourself liable for a claim more significant than your home, auto, boat, camp, or another personal insurance(underlying) policies would cover.  

As a general rule, you might hear you should purchase umbrella insurance if the total value of your assets, including ordinary checking and savings accounts, retirement and college savings and investment accounts, and home equity, exceeds the limits of your auto or homeowner's liability. 

Hence the name "Umbrella," it's a policy that covers above and beyond the base liability on your primary personal policies. It picks up the liability where your other individual policies end.

Umbrella insurance even covers certain liability claims those policies may not, such as;

• Libel
• Slander
• Malicious prosecution
• Wrongful entry
• Invasion of privacy
• False imprisonment
• and other hazards  

Also, if you own rental property in your personal name, umbrella policies provide liability coverage beyond what your rental property policy covers.

So, who should have an umbrella policy? Well, that depends on if you can answer "yes" to any of these questions:

• Do you own property or rent to others?
• Do you have significant savings or net worth? 
• Do you host parties or entertain guests?
• Does your home have a pool or stairs?
• Do you sit on the board of a non-profit or coach youth sports?
• Are you a hunter, or do you have a hobby involving firearms?

You may think you'd never get sued, but what if injury happens, causing medical bills? Let's say...

• Your dog bites someone.
• Your kid gets in a fight at school & breaks the nose of another kid
• You send sandwiches to your kid's school that accidentally cause food poisoning
• A child that was invited to sleep over falls off the swings at your home and breaks an arm

You may not realize all the factors that leave you vulnerable to lawsuits. Umbrella Insurance covers you so that you can continue to do the things you enjoy without worrying about what could go wrong. 

You don't need to have significant wealth to protect yourself from lawsuits. Why not get a quote on something that protects you and your household from major loss? The cost is likely lower than you think!

If you have questions about Umbrella Insurance or want to know more about how having this policy may benefit you, either give us a call or fill out the form below. 

Think of it this way: for a couple hundred dollars, you can have your attorneys on retainer and let those insurance companies ' attorneys handle those lawsuits and headaches. For that premium, it's worth it.

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