Do I need an umbrella insurance policy?
That is a fair question to ask yourself but not one that deserves a quick answer. Because an Umbrella insurance policy goes OVER everything you own, so your risk factors are different thaan your neighbors.
Many consumers error in assuming that an Umbrella insurance policy replaces all their other policies, making 1 big policy. In reality, the personal umbrella insurance policy gives ADDED liability protection, with all other insurance policies underneath this umbrella policy.
So if you owned a boat, motorcycle, snowmobile, RV, seasonal cabin, rental property…all of these could go under a personal umbrella policy and get $1,000,000 of added liability protection.
So what are some risk factors that make you want and/or need a personal umbrella insurance policy?
If you own one of the afore mentioned items, you probably should buy it. If you have young, inexperienced drivers in the house, that would be another good reason. Or do volunteer work and/or sit on a board of directors – you’d have personal liability covered if someone sued the board.
Or if you are a soccer mom/dad and drive neighbor kids to practice and games. Anoter risk factor thatcould end up in a lawsuit. Or you have a side business, doing taxes from your home, doing haircuts in your basement,maybe doing computer work/resume’ – all risks when people visit your home.
So we tried to make it simple here, to see if you carry risk factors that make a personal umbrellainsurance policy important protection for you. Seel professional insurance help if you are not sure.