Need an Umbrella Policy? 

A hot topic of conversation in the office, recently, is why it is important to think about having an Umbrella policy. Many times, when people hear about Umbrella policies, they automatically think that it’s way too expensive, that only wealthy people can afford. That actually isn’t the case. What we have found is that there are so many real life examples of people who thought that their home or auto policy limits would be enough, but in the end, wish they’d had more coverage, because they were left with expenses that they weren’t prepared for.

First, let’s backup and talk about what IS an Umbrella policy, and why is it valuable to you?

An Umbrella is always “above” the policies you already have in place, and acts as “extra” liability, when the limits on your other policies, like your home or auto, are exhausted. For example, if you are in a car accident and the damages exceed your limits, this is where your Umbrella policy would step in and provide the extra coverage that you need.

Let’s say that this car accident resulted in a fatality, or an extremely serious injury that put you up in the hospital for days…and rehab for weeks…racking up an insane amount of medical bills…or funeral expenses. The limits on your auto policy are going to be maxed out in the blink of an eye. Then what do you do? The rest of the expenses fall on you. UNLESS you have an Umbrella policy.

Okay. Makes sense.

 So how much is an Umbrella policy, you might be wondering? 

Typically, for under $500 a year, you can obtain one of these policies, giving you up to 1 million dollars in extra coverage, helping make up the difference in unexpected expenses. Umbrella policies cover everything, from liability risks, property damage, and even legal fees. An Umbrella policy is in place so that when you're facing accidents or disastrous situations, you can be reassured that you will remain financially stable.

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