What’s an Umbrella Policy?
You’ve probably heard of an umbrella policy before, you know it’s good and offers more coverage, but is an umbrella policy really worth it? It’s actually pretty simple, an umbrella policy is extra liability coverage. It offers coverage above the limits on your auto & home insurance policy. When the liability coverage on your auto or home insurance policies has been reached or exhausted, the umbrella policy kicks in and covers over and beyond those limits on your underlying policies.
Example of umbrella policy coverage:
Let’s look at an example: You are in an accident and it’s your fault. The accident caused injuries to the other party. Your personal auto policy may cover you up to your limit, lets say that’s $250,000. What would happen though if that $250,000 limit was not sufficient to pay for the other party’s injuries? Without an umbrella policy, you would be personally responsible for the amount over $250,000. That amount could be very high- medical injuries, time off work, lost wages, etc. The amount can add up very quickly. That’s a scary thing to think about!
That’s where a personal umbrella policy comes into play. It can help cover the additional costs over your limit on your auto policy (or home) so that you aren’t stuck with the bill.
(This is simply an example, this does not refer to any specific contract or policy, please speak with your insurance broker for specific details on your policy).
What is covered by an umbrella policy?
These things are generally covered with an umbrella policy. However, these things are just examples, each policy is different, be sure to check with your insurance company on your specific policy for exact details.
- Bodily Injury
- Personal Injury
- Property Damage
- Landlord Liability
What’s not covered in an umbrella policy?
There are few things that are generally not covered with an umbrella policy. It’s important to be aware of those things as well. These things could include:
- Your personal Property
- Losses related to business
- Intentional or criminal acts
How much does an umbrella policy cost?
For the amount of coverage, umbrella policies are actually very inexpensive in Arizona. The can cost as little as $200 a year for $1 million in coverage. Things taken into account when determining the price of an umbrella insurance policy are the number of vehicles owned, the number of homes owned and how many drivers. Umbrella policies can be quoted very quickly and easily. SafeStreet Insurance recommends that EVERYONE have an umbrella policy. We believe that you can’t have enough coverage!
The above post is meant as general information and as general policy descriptions to help you understand the different types of coverage. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance carrier and to read your policy contract to fully understand your coverage.