Understanding Personal Umbrella Insurance

Blog page

Picture this: it’s been a hectic day, your mind wanders for a split second, and next thing you know, you’ve rear-ended the luxury Audi in front of you. Your heart sinks. You remember, “I have insurance!” But you forget that your auto insurance policy only covers up to a certain amount of damage to the other car. (You’re thinking: “Why did I have to hit such a nice car?!”) Can you afford to personally pay off the rest of the damage?
 

If you’ve had the chance to read through KW Insurance’s words of wisdom in the blog post, “Alan’s 10 Commandments for Success,” then you know that one of our company’s essential truths is: Don’t Take Unnecessary Risks! Here at KW, we want to make sure you have adequate coverage — no matter the incident. One of the best ways to avoid getting into a bind when expensive accidents happen is through a personal umbrella insurance policy. Not sure what that entails? We’re here to help.

What is Umbrella Insurance?

Umbrella insurance provides extra coverage when you exceed the limits of your personal insurance policy. When you have an expensive accident that goes beyond the coverage on your homeowners or auto insurance, your umbrella insurance will kick in to cover the rest. If you are ever faced with a lawsuit, for example, a majority of your defense costs will most likely be covered as part of the umbrella policy. Your insurance provider, who carries the financial responsibility, will even put their best “muscle” (AKA corporate lawyers) on your side.

Is It Expensive?

No! Umbrella insurance is extremely cost-effective. For less than $25 a month, you can purchase $1 million worth of personal liability protection. Trust us, the peace of mind you get when you purchase an umbrella insurance policy can be priceless.

Shouldn’t My Policies Already be Coverage Enough?

Not necessarily. Think about it: if someone gets hurt on your personal property, having an umbrella insurance policy is assurance that you won’t have to dish out buckets of money for expensive litigation, settlement costs, medical expenses, etc. You could be sued if your dog bites someone on your property, and be on the hook for several hundred thousand dollars in medical, legal and property damage expenses, some of which may exceed the limit on your homeowners insurance policy.
 

Trampolines and swimming pools on your property are other compelling reasons to have extra insurance. You just never know what’s going to happen… And while we hope nothing bad happens, we wouldn’t want you taking unnecessary risks without adequate coverage. Umbrella insurance is an extra, comfy cushion for your homeowners, renters, and/or auto policies. That’s right, an umbrella policy can cover multiple policies, which is more cost effective than adding additional coverage to each individual policy.

Another Use for Umbrella Insurance

Do you or your family members ever use social media? Then you could definitely benefit from having an umbrella insurance policy. Imagine this scenario: your teenager posts some gossip about a classmate on their Facebook. It is immediately shared by all of their friends and goes viral. The classmate’s parents find out and decide to sue you for libel. Your personal umbrella insurance policy could come to the rescue by filling in the gaps left by your other insurance policies and by providing coverage for incidents just like this.

 

Have more questions about personal umbrella insurance? Stop into either of our two convenient offices in Cambridge or Dedham, MA, where we would love to see you in person! You can also visit our website or give us a call today at 781.751.9080 (Dedham Office) or 617.492.4150 (Cambridge Office).