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It’s not raining – so why do I need an umbrella?

Umbrella 2 Umbrella policies are one of the most misunderstood insurances in the market.

There are several myths surrounding them:

  • They’re only for rich people
  • They’re too expensive
  • They’re complicated to deal with

Truly nothing can be farther from the truth. As a matter of fact an umbrella policy can prove to be invaluable to someone regardless of how much money they have or don’t have.

Just think about the following scenarios:

  • You pull out from a parking lot to make a left turn - there is a van to your left with their turn signal to enter the driveway that you are exiting - you don’t see any other vehicles, so you pull out into the road. As you enter into the roadway, you run into a motorcycle. The driver of the motorcycle is ejected from his bike and pronounced dead at the scene.
  • A neighbor falls on your property and hits their head on your sidewalk and suffers a severe brain injury as a result.
  • A natural disaster in which another person's property is damaged by a tree on your property crashing down on their vehicle or home.  You may think this would be covered by your homeowners insurance.

Now these example are extreme – but they are also something that can happen to any one of us. With these types of situations, having an umbrella policy in place can provide that extra layer of liability protection for you.

That is what an umbrella is -  it is designed to cover you and everything you own underneath it – and will not “kick-in” until your underlying limits are exhausted.

So what other protection can it provide? It can also provide coverage for claims that may be excluded by the primary policies often including, but not limited to:

  • False arrest
  • Libel
  • Slander
  • Invasion of Privacy

So the next time you review your insurance, make sure you ask your agent about an umbrella policy. The benefit can definitely outweigh the cost – and you will be surprised at how reasonably priced an umbrella policy is.

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