Tedmus Insurance Services

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