What is an Umbrella policy and why do you need one?
An Umbrella policy has a minimum coverage of $1M and as the name implies it goes over your auto and home/tenants policies. It provides an additional $1M (or more) of liability coverage over the underlying policies which typically carry limits of $250K per person/$500K per accident for auto and $300K for homeowners. Certain carriers require more/less limits on the underlying but these are the most common underlying coverage requirements.
Umbrella policies are not super expensive for the amount of coverage they provide. Most policies range from $200-$350 a year. The coverage not only pays for damages that occur on your property, but also damages that your family (including pets and kids) cause to someone else’s property. The additional coverage is necessary because it provides the added protection most of us need in the litigious society in which we live. The large awards the court systems have been granting are astonishing. If someone slips and falls on your property or you get in a car accident that is your fault, an injured party could be awarded a sum that exceeds your home or auto policy limits. The umbrella policy would protect you and your assets by paying the additional money up to the policy limit. You could easily prevent financial distress by having an Umbrella policy.
Families with dogs should seriously consider buying an Umbrella policy. Even if you have the most gentle, non-biting dog the statistics are there. The average dog bite claim has rose from $19,162 in 2003 to $29,396 in 2011. These numbers are for the average dog bite. If a visitor to your home is severely injured the cost could exceed $1M. According to the Insurance Information Institute dog bites account for a third of all homeowners claims. The statistics are alarming and definitely warrant a look into getting an Umbrella policy. Protect your family and assets.
Umbrella policies are one of the smartest ways to protect you and your family from a devastating financial loss. Call us for more information and to review your options: www.mancuso-nowak.com.