BJ Kirby Insurance Agency

Umbrella Insurance

Who Needs Umbrella Insurance?

Consider this situation: You get sued for $1.25 million after a car accident, or an incident on your home or property. But your homeowner’s insurance policy only covers up to $750,000 in damages.

Guess who is responsible for the other $500,000 if you’re ordered to pay it? You are, unless you have an Umbrella insurance policy.

If you own a home or car, Umbrella insurance plans cover you and your family by paying claims that exceed the liability limits of your existing auto or homeowners policy. With Personal Umbrella coverage, your home and other valuable assets are safe.

What is Umbrella Insurance?

Simply put, Umbrella insurance plans are extra liability insurance. It was created to help protect your assets that you could potentially lose from major claims and lawsuits.

It protects you in several different ways:

  1. Umbrella Insurance provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies. This protection is designed to kick in when the liability on these other policies has been exhausted.
  2. Umbrella Insurance provides coverage for claims that may be excluded by other liability policies including: false arrest, slander, libel, and liability coverage on rental units you might own.

Examples of What Umbrella Insurance Covers

Umbrella insurance provides coverage for:

  • Certain lawsuits
  • Injuries
  • Damage to property
  • Personal liability situations listed below

Isn’t Homeowners Insurance Enough?

It depends on how much you want to cover your assets. Umbrella insurance insures you above and beyond the limits of your Homeowners Insurance policy and covers certain situations that aren’t covered by the other types of policies. Want to get an Umbrella Insurance Plans free quote? Call us at (781) 447-5511.

Here are some specific examples of the types of coverage provided by an umbrella policy and how they protect you:

Bodily Injury Liability – covers the cost of damages to another person’s body. Examples include the cost of health/medical bills and liability claims as a result of:

  • Injuries sustained by a neighbor’s child who falls while playing in your yard
  • Injuries to other parties due to a serious auto accident where you are at fault
  • Injuries sustained by a guest in your home due to a fall
  • Harm caused to others as a result of your dog

Property Damage Liability – covers the cost of damage or loss to another person’s tangible property. Examples include the cost associated with:

  • Damage to vehicles and other property as a result of an auto accident where you are at fault
  • Damage claims incurred when your pet damages personal property
  • Accidental damage to school property caused by your child

Owners of Rental Units – helps protect against liability that you may face as a landlord. Examples include the cost of liability claims as a result of:

  • Someone falling over a crack in the sidewalk of your rental property and suing you for damages
  • Your tenant’s dog biting someone and you being held responsible for the injuries

Coverage is also provided if you, or a family member are sued for:

  • Slander – injurious spoken statement
  • Libel – injurious written statement
  • False arrest, detention, or imprisonment
  • Malicious prosecution
  • Shock/mental anguish
  • Other personal liability situations

How Much Coverage Should I Get?

Personal umbrella policies usually offer at least $1 million in liability coverage, and are usually available in increments of $1 million, up to $5 million.  These policies offer peace of mind, and are not that much more expensive, so call us today to get a free quote at (781) 447-5511.