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Umbrella Policies

What is an umbrella insurance policy and what is it good for?

Your home and auto policies have liability coverage.  Most people feel they have sufficient liability coverage with $100,000 on their auto policy and $300,000 on their home policy.  In today’s litigious society, the question you need to ask yourself is, “Are my liability limits high enough to protect all my personal assets in the event I am responsible for a catastrophic loss?”.

An umbrella policy is designed to stack additional liability coverage over your personal policy liability limits.  Say an accident occurred in which you were held liable for a $500,000 loss.  If your home insurance has a maximum liability limit of $300,000 this is where your umbrella policy would "kick-in" and pay the additional $200,000.   

Umbrella policies are available from one million to five million dollars.  Polices can start at about $200 a year.  Not bad when you consider the alternative in a catastrophic loss!

Here are real life claims submitted where insured's maxed their liability limits and did not have an umbrella policy in force:

1- Claimant's son found at the bottom of the insured's swimming pool. 
     Liability claim = $2 million

2- Insured's teenager went off the road causing the car to flip, ejecting all passengers.
     Liability claim = $5 million
3- Insured collided with a motorcycle causing fatal injuries to the driver.
     Liability claim = $2 million
4- Claimant fell down the insured's stairs.
     Liability claim = $1.5 million
5- Insured hit an unlit barge with watercraft causing a triple fatality.
     Liability claim = $1.5 million

For a free quote, call Aspen Cove Insurance (801-431-7888) to tailor an umbrella policy to fit your needs and protect your assets. 

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Provo, Utah 84604 | 801-431-7888

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