UMBRELLA POLICIES: Deciding on whether you need an umbrella policy or
not?
Besides peace-of-mind, an umbrella policy has three major advantages: higher liability limits, extended coverage for defense costs, and gap coverage - coverage for many of the lawsuits excluded by primary policies (auto and home insurance).
When I mean gaps, I mean the liability risks in your life that
are not covered by your primary insurance policies. Here are
just a few possible examples of activities that may not be covered under a home
or auto policy:
- Renting "toys" of all kinds - snowmobiles, boats, all-terrain vehicles
- Racing sailboats or houseboats
- Renting cars outside the United States and Canada
- Employing a nurse or nanny
- Assuming liability when you sign a contract
- Serving on nonprofit boards of directors
- Having underground fuel tanks and septic systems (pollution liability from leaks or spills)
Cost wise, most personal
umbrella policies start at $160 a year.
For more information contact
us at (800) 903 5752 or email at eric@tedmusinsurance.com
