Post on 05-Jan-2016
Umbrella Insurance
Note
Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann.
I highly recommend this book.
Personal Umbrella
• Auto and homeowner liability insurance policies are not enough– dollar coverage and type of incidents
• Umbrella Policy: A second layer of liability
How much to buy?
• Umbrella sold in million-dollar increments
• It is inexpensive
• What is your suability factor?
Umbrella Policy Should Cover Gaps in Insurance
Gap: Liability risks not covered by primary (e.g., auto, home) insurance– Which gaps?
It depends on your lifestyle.
Examples, Umbrella Insurance May Help
• Boat, ATV, and other “toy” rentals
• Liability when signing a contract (e.g., rental of a chain saw)
• Sailboat racing
• Car rental (even though your auto policy may cover; an umbrella policy will cover above and beyond the auto policy
In a perfect world
• 1st, choose your umbrella policy first to make sure you have the coverage you need
• 2nd, select your auto and homeowner’s insurance
• Insurance companies often when sell you an umbrella policy if you do not have your auto and homeowner’s with them.