Umbrella Liability coverage – technically called excess liability coverage – provides additional (excess) coverage above and beyond what your auto and homeowners policies protect.
These underlying policies cover all damages up to their limit, THEN the excess liability coverage comes into play. The good news is that this type of coverage is usually inexpensive, due in no small part to the unlikely nature of using it. BUT – just because it is unlikely to be depended on, doesn’t mean it’s not valuable as a risk transfer strategy.
Here are a few pieces of advice while considering an umbrella liability policy:
- Use the same carrier as your auto and homeowners policies when possible: This will ensure that the underlying policies meet the requirements of your umbrella policy to avoid any coverage holes that might appear, not to mention the ease of making sure you don’t miss any payments. You may also receive “bundling” discounts.
- Recreational vehicles? Make sure they are covered: Excess liability coverage requires separate riders to ensure your boat, golf cart, or ATV are covered in the case of injuries sustained by you or others while enjoying them. This can be a significant coverage gap.
- Jewelry or other collectibles coverage: Ask your insurer if this should be covered by your umbrella or homeowners policy. Make sure these priceless items are covered.
Want to learn more about umbrella coverage? Schedule a meeting with us!
Disclosure:
This material has been prepared for informational purposes only and should not be used as investment, tax, legal or accounting advice. All investing involves risk. Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss. You should consult your own tax, legal and accounting advisors.
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