You’ve probably heard the term “umbrella policy” before, but what does it mean?
An umbrella policy is actually quite simple to understand: It’s a liability policy that goes on top of your existing policies (like auto, home or renter’s, or farm insurance) and provides extra coverage that goes beyond the limits of those policies.
Why Everyone Should Consider Umbrella Insurance
Wondering if you need umbrella coverage? Watch the video below from Don Ritchey, Block Insurance president, to hear why he thinks everyone should consider adding umbrella insurance.
“The main reason for an umbrella policy is to protect your assets,” said Ritchey. “We get a lot of comments from insureds that they spoke to their financial planner or their attorney, and the top recommendation was to buy a personal umbrella to protect their assets.”
Ritchey noted a discussion he’d had with an insured customer, who had previously been in a serious accident while covered under another insurance company. The cost of the accident exceeded the basic auto policy, and the insurance company would not pay above those limits.
When the insured met with an attorney, the first thing they told him was this: “If you had purchased an umbrella policy, we would not be having this discussion.”
How Block Insurance Tailors Your Umbrella Policy
There’s no such thing as a one-size umbrella policy. Rather, your agent will work with you to determine exactly what you need to cover - and what you don’t.
“We take a lot of pride at Block Insurance as far as reviewing exposures with our prospects. We have an auto and home checklist so we go through a series of questions to see what their exposures are,” said Ritchey.
He added, “Once we develop a policy for them, we stick with things they need and don’t try to sell things they’ll never use.”
Even though most people may never need their umbrella policy, those who have one can experience peace of mind that they’ll be covered if anything happens.
“It’s just a security blanket. You’ve worked all your life to have what you have, and an umbrella is a way to protect that,” Ritchey said.
What Does an Umbrella Policy Cover?
Umbrella policies offer broad coverage, including for libel, slander, defamation of character, legal defense costs, and bodily injuries or property damage caused by you or members of your household.
Besides the example mentioned above, here are a few other situations when you might need umbrella insurance.
Your son or daughter borrows someone’s car, wrecks the car and causes injuries.
Your dog bites someone.
A handyman or contractor hurts themselves on your property.
An acquaintance is injured at your house.
Remember, every insurance policy is like a tailored suit: It should fit you exactly. Talk with an insurance professional to find the best policy for you.
Get a Quote for Umbrella Insurance
At Block Insurance, we’re here to help you find the right policy to protect what matters most. Contact us today to request a quote for umbrella insurance or learn more about what we offer.