Most people realize it’s important to have insurance for their home,
their car, and other essentials. They will often buy a homeowners policy,
auto policy, or other policy and assume it will cover them for anything.
Standard policies do indeed cover many unfortunate events or liabilities.
Unfortunately, they may not provide complete protection in the event of
a serious claim.
Some claims can create liabilities greater than the limits of a normal
insurance policy. No one should be under the illusion that they are immune
from those liabilities. Even the most decent, law abiding person in the
world can make a costly mistake. A generally safe driver who is momentarily
negligent can cause a terrible
accident which kills or cripples other people. One lapse in supervision by an otherwise
responsible homeowner can end with a child drowning in a backyard swimming pool.
For these reasons, people should consider the possibility of getting an
additional layer of coverage when they buy insurance. This additional
coverage, often referred to as umbrella insurance, can pay extra amounts
if your regular insurance policy isn’t enough. The umbrella insurance
provides additional peace of mind, especially for people who are relatively
affluent and may have assets which could be seized by creditors.
How else can I benefit from umbrella coverage?
Umbrella coverage is also worth considering for business owners. Many medium
and large businesses have umbrella coverage to protect corporate assets.
Large companies such as those in the Fortune 500 don’t take chances,
and typically have layers of coverage well into the six and seven figures.
The good news is that umbrella insurance is relatively cheap. Because few
claims are so large that they tap into umbrella coverage, insurance companies
charge lower premiums for it than they do for regular (primary) coverage.
Adding umbrella coverage to your insurance portfolio is less financially
painful than one might think.
The bad news is that umbrella coverage is largely unregulated. While state
and federal law may restrict the way primary policies can be written to
protect consumers, they are almost entirely hands off for umbrellas. This
may be because umbrellas are typically bought by business owners or affluent
people who tend to be more sophisticated than average buyers.
Need more advice? Contact us!
There are many different varieties of umbrella policies, and the things
they cover varies greatly. Some provide the same coverage as the primary
policies beneath them, while others are more restrictive. Some umbrellas
cover not only liabilities, but claims you might make for your own losses
as well. Understanding the options can be daunting for people who don’t
work in the insurance industry. Thus, an in depth conversation with a
qualified insurance professional is well worth the time for anyone considering
Contact us to talk with our Clearwater personal injury attorneys at Roman & Gaynor
for more legal advice.