When it rains, it pours. And, you may need additional coverage that standard policies don’t offer. Commonly, these additional coverages are called umbrella policies. Many people don’t realize that they may need it—so here are some reasons you might consider purchasing additional coverage:

• If the total value of your assets— including the money in your bank, investment and retirement accounts; and your home equity—exceeds the limits of your homeowners, renters, or auto policies, an umbrella policy helps cover the remainder—or more—of that value.
• If you are exposed to higher risks, an umbrella policy can assist in covering claims associated with those risks. Higher risks include renting out your property to others; employing people to work at your home (e.g., a housekeeper, a nanny); owning potentially dangerous commodities such as a pool or a trampoline; and even being someone who’s well-known publicly.
• If you are at risk of being sued, an umbrella policy provides additional limits—and in some instances, broader coverage—in the event of a lawsuit. That way, your assets could be protected if a judgment goes against you. Hint: Everyone is at risk of being sued.
• If your teenager started driving recently, an umbrella over your auto policy could cover extensive damages that exceed the limit on your auto policy if he or she causes an accident.
• If you rent a car when traveling outside of the U.S., (excluding Canada and Puerto Rico), your personal auto policy may not cover you if you are involved in an accident. An umbrella on your auto policy could provide the additional coverage you would need if this happens. Check with us before you rent internationally.
• What’s not covered: Other structures on the premises other than a garage; finished walls, floors, ceilings or personal belongings in a basement; and living expenses while flood damage is being repaired.

What umbrellas don’t cover. Umbrellas don’t cover everything that your standard policies won’t. Remember: Umbrella policies cover liability for injury to other people or for damage to other people’s property, not your own injuries or damage to your own property. Additionally, it won’t cover damage caused intentionally. Some other things umbrellas may not cover include liability for business-related claims—you would need a commercial general liability policy for that—and liability for violation of a written or oral
contract.

If you think you need umbrella coverage—or if you need help deciding if you do—give our office a call today. We look forward to hearing from you.