Let’s face it, most of us have limited budgets when it comes to our insurance. And most people feel insurance is an expensive item. Generally, auto, homeowner’s, RV, and boat insurance policies cover liability for injuries or property damage suffered by a third party. Personal insurance policies are designed to cover accidents for which the insured person may owe tens or even hundreds of thousands of dollars. However, sometimes the person may be responsible for an accident so catastrophic that the damages are $1,000,000 or more.
What An Umbrella Policy Covers
An umbrella insurance policy extends over your primary homeowner’s insurance, auto insurance, and other primary personal insurance policies. Here is an example. John Doe falls asleep while driving and hits a van with a family inside. The accident results in $600,000 of medical bills, but John Doe’s auto policy has a $500,000 limit. Fortunately, John Doe also has a $1,000,000 umbrella policy, and the additional $100,000 would be covered under the Umbrella.
Some Reasons Why You Need An Umbrella Liability Policy
- You own rental properties
- You own a Boat, RV, or ATV
- You have a high net worth
- You have teen drivers
- You own a swimming pool, trampoline, or swing-set
In addition, the umbrella may cover things like volunteer activities, statements made online, and certain business activities that a homeowner’s or auto policy might not cover.
North Bay Insurance Brokers Inc. focuses on delivering quality insurance products with a personalized, hands-on experience that sets us apart in today’s mark