Last week I wrote about several misconceptions that are common to personal umbrella policies. While those four misconceptions still hold true, I thought I would turn this into a two-part series since there are other misconceptions that are quite common. We’ll continue the previous list by adding a few more (along with corresponding explanations as to why each misconception is false):
Misconception #5: “Umbrellas cover everything, right? My home, cars, and all my stuff.”
Well, this depends on the exact nature of what you mean. Umbrellas provide extra liability protection in excess of the personal liability coverage that is included with homeowner, condo, or renters policies. They also provide additional protection over your auto liability limits of insurance. However, umbrellas don’t provide any sort of insurance for physical losses to homes, cars, or other “stuff.”
Misconception #6: “I can’t get an umbrella for my rental property, right?”
Incorrect! There are many types of personal exposures you can schedule on your personal umbrella. This includes rental properties and watercraft policies.
Misconception #7: “Umbrella policies are only for wealthy people.”
Again, this is not true. Anyone can be sued for injuring another person and someone with minimal assets can be sued just the same as someone with significant assets. If you’re intent on keeping your assets – no matter how large or how small they are – consider purchasing an umbrella.
Misconception #8: “I’m a good driver and have never caused an accident, so I probably don’t need an umbrella.”
While auto accidents make up a significant portion of large claims that trigger umbrella coverage, they aren’t the only type of claim to do so. Do you have a dog? Even ones that have never bitten can bite someone for the very first time in the blink of an eye. Do you have a swimming pool? Accidents can happen. Do you ever serve alcohol to friends or family at your home? Again, accidents can happen.
As I stated previously in part one of this post, umbrella policies are quite inexpensive for the amount of protection that you get from them. Don’t leave it to chance – provide the protection that you and your family deserve and consider purchasing an umbrella policy through your insurance agent today.
The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.