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.