Umbrella Insurance Policies
Ormond Beach, Daytona Beach, and Palm Coast, Florida
Like most people you have an insurance policy to protect your home and the cars driven in your family. If you own property that is rented out to others, you will have a special rental property insurance policy for that. If boating is one of your usual activities, you certain make sure your watercraft is covered by insurance. Your homeowners policy might have special coverages unique to your working or living situation.
Do You Carry Several Insurace Policies Already?
You can probably be somewhat confident that you currently have all the coverage you need. However, you might consider taking your peace of mind one step further by obtaining an umbrella insurance policy, the term for a liability policy that fits over your primary policies on an excess basis (and can also provide protection that may not be available under your primary coverage).
Why Would I Need Umbrella Insurance?
Umbrellas are formulated to be carried over your primary or underlying liability coverage. Your primary coverage is part of your personal auto and homeowners insurance. In the event of a loss, the liability portion of your auto or homeowner coverage is the first to respond, hence the label "primary". Umbrellas or excess liability policies kick in after the primary insurance has paid its limit, yet the loss has gone beyond that limit.
Your primary insurance might be all the coverage you need. But in the case of a large scale accident, any shortage could come out of your personal assets once your limit has been reached. An umbrella protects against this by giving you excess coverage.
Umbrellas provide liability coverage on top of the following:
- Personal automobile
- Recreational vehicles
- Personal liability
A traditional umbrella offers even broader protection, covering primary policies as well as a variety of typically uncovered exposures such as personal injury due to hobbies or activities that may increase the likelihood of facing liability losses. Mitchell Noel will be happy to help you identify the need for this type of umbrella if you are engaged in high risk hobbies or activities.
What Does It Cover?
Umbrella policies provide coverage for any amount of a loss that exceeds the primary policy's deductible but if that loss is not covered under the primary policy, a self-insured retention (SIR) is a type of deductible you will have to pay before the umbrella coverage kicks in.
Excess policies perform in that they provide additional amounts of coverage to supplement existing protection. The umbrella may only cover situations covered by its underlying coverage. So be aware that this type of umbrella excludes a loss that is excluded under the primary policy. If you are unclear as to what is best for you, feel free to ask us questions. We are happy to help and our quotes are always free.
You should consult with Mitchell Noel to determine if your umbrella policy gives you the proper coverage that you will need in case of crisis or emergency. Or contact us to explore the option of a new umbrella policy.