Archive for the ‘Umbrella’ Category

Why Buy Umbrella Coverage?   Leave a comment

You know the old saying: If you bring your umbrella it probably won’t rain, but as soon as you forget and leave it home there is a downpour!

Umbrella coverage is something many families should carry but don’t. This important insurance policy helps to increase limits on all your other insurances, like home and auto, if you were to be named in a lawsuit.  There are several different types, but all have one thing in common: they are not expensive but they are incredibly valuable.

In today’s lawsuit happy world, you need a little extra coverage so you can rest assured that if help is needed it will come.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Posted September 4, 2012 by leecountyinsurance in Umbrella

What Does Umbrella Insurance Cover?   Leave a comment

Perhaps, you have been repairing your outside deck and patio due to the wood becoming old and rotten. You mean to finish this job quickly, but it drags on. One day, you invite a friend over. He wanders onto your deck and falls through it. He badly injures himself and sues you for over one million dollars. You may be wondering what kind of insurance you should buy to protect against situations such as these. The answer is umbrella liability insurance.

It is for extreme situations such as these that umbrella insurance is purchased. Umbrella insurance, however, is not really something designed to be purchased alone. It is designed as more of a way to fill in gaps in existing forms of insurance coverage that an individual may have. You may need Umbrella insurance, for example, if your car insurance can only pay out a certain amount in certain situations. Another situation may present itself when your home insurance can only pay out at a certain rate.

Umbrella insurance acts as a kind of backup insurance to come into play when other forms of coverage a person owns have become exhausted. For example, a person may be sued for $1,200,000. That person may have car insurance that can only pay out $400,000 and home owners insurance that can pay out $250,000. If this person does not have umbrella insurance, that person may end up losing almost all of her possessions. However, with one million dollars worth of umbrella insurance, the amount of coverage may be more appropriate to cover the actual loss amount.

Umbrella insurance doesn’t only fill in the gap for these kinds of policies. It can also be used in many other situations in which a person may be sued for damages. The reason it is called umbrella insurance is because the kind of coverage it provides is very broad. This is why umbrella insurance is extremely popular with businesses that are at risk of being sued in a multitude of different scenarios.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Posted September 4, 2012 by leecountyinsurance in Umbrella

What An Umbrella Policy Is, and Why you Might Need It   Leave a comment

Most Americans view auto insurance as necessary to protect against the costs of a car accident. Likewise, it’s common knowledge that homeowners insurance helps families rebuild their lives and homes. An “umbrella” policy is not as well known, but anyone who owns a home or any assets should consider buying it. Umbrella liability insurance covers you in many situations if you are held responsible for bodily injury, property damage, or personal injury. The product got its name because it adds a higher level of protection above auto, homeowners and boat policies, which are “primary” policies. Umbrella coverage kicks in after primary insurance is exhausted. What’s more, an umbrella policy offers primary coverage for losses not covered by other insurance. Typically, insurance agents sell an umbrella policy in conjunction with auto and homeowners coverage. You can usually add $1 million-plus of liability insurance for a few hundred dollars per year, and a multiple-policy discounts often can be had. One tactic insurance pros suggest: raise deductibles on auto and homeowners policies, and use the premium savings to pay for umbrella coverage. What does primary insurance pay for? Liability insurance under auto and homeowners policies pays expenses (for example, an injured person’s medical care, rehabilitation and lost wages) because the policyholder was at fault through negligent actions. Liability coverage also pays for costs of defending against a claim or lawsuit. It’s common for a driver, vehicle owner, homeowner, or boat operator/owner to be held responsible for someone else’s injuries, property damage, lost wage and/or expenses. An at-fault driver also can be held liable for personal injury (which is distinct from bodily injury), including psychological injury such as “pain and suffering.” What does umbrella coverage do? The umbrella is a shield to protect an individual from having to tap into savings or sell assets to pay a judgment or claim. The umbrella policy keeps the hands of the claimant from the personal, family and business assets of the negligent person. Intoxicated drivers leaving a party at your home, dog bites, and the neighbor kid falling off the trampoline– these incidents can cause financial losses. Even lending a friend a ski house or lake house for the weekend can create a claim. A tree in your yard that blows over in a storm and crushes the neighbor’s car is another example. A home-based business that requires visitors to come to your house may create a loss that’s excluded from homeowners coverage. But all these incidents may cause bodily injury, personal injury and loss of wages. These losses might exceed (or be excluded from) primary insurance limits and coverages. Who should consider an umbrella policy? Most homeowners should consider an umbrella, but especially those active in community affairs. Serving in civic, charitable, and religious organizations can lead to conflicts, claims, and even lawsuits. Even if a lawsuit is thrown out of court, you still must defend yourself. Umbrella liability coverage picks up these costs, whether or not a person is actually found to be liable. Defense costs generally are covered in addition to the liability limits of the umbrella policy. Conversely, a person might face a damaging situation such as a false arrest or imprisonment, defamation, invasion of privacy, wrongful entry, eviction or malicious prosecution. Most will want to defend themselves, but will face legal and other costs to do so. Homeowners coverage won’t cover it; umbrella coverage can. We are a Trusted Choice® agent and can review your family’s coverage to ensure you are protected. “Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Posted September 4, 2012 by leecountyinsurance in Umbrella