Your current homeowner, auto, or business insurance policy provides essential financial protection when something goes wrong. Insurance is what keeps you from losing everything after some type of damage or loss.
These policies, however, have limits. Some limits are based on consumer needs, such as going with a lower maximum payout in order to save on premiums. Other restrictions simply exist within the policies themselves, such as liabilities that are not covered. To add insurance coverage that offers protection beyond these limits, your insurance agent could recommend adding an Umbrella Policy to your personal or business policies.
What is Umbrella Insurance in Pennsylvania?
If it’s raining and you leave the house in a raincoat and hat, you are partially covered. The rain will still get your legs wet, and anything you’re carrying in your hands might get saturated. If you feel that you’ve protected the most important things from getting wet, though, you have enough coverage. If you want to protect more, like your legs, bag, books, or packages, you’ll need to extend the coverage area. An umbrella provides this extended coverage, keeping the rain off your legs (let’s pretend the wind doesn’t exist for our example) and the things you’re carrying. Your standard liability insurance is the hat and coat. If you feel as though you are covered well enough for the things that matter most, you have enough coverage. If you zoom out your perspective and take notice of
several priorities that are not protected, you might start feeling a bit more exposed than you expected. An umbrella sure would come in handy at this point. An umbrella liability insurance policy exceeds the limitations of your existing policies. If you have a claim that will cost more than your coverage limits, the umbrella policy kicks in to pay additional expenses. If you have a claim that is not covered by your standard policy, it might be covered by the umbrella policy. It’s very important to go over all of your coverage with your trusted insurance agent to make sure you understand which risks are covered by which policies.
Why Would I Need an Umbrella Policy for My Home, Auto, or Business?
An umbrella policy is not just a simple add-on for insurance agents to collect an additional commission. It is a very specific type of insurance coverage that applies under various circumstances. Not everyone needs an umbrella policy, but every homeowner and business owner should take the time to learn about the coverage and make an informed decision. One factor to consider when evaluating umbrella insurance is your own, or your business, net worth. If your assets exceed the limits of your standard insurance policies, a claimant could go after your personal property, or even future income. An umbrella policy prevents you from losing everything in an insurance claim or jury award. Another factor to consider is the level of risk associated
with your home, vehicles, or business.
- If you have a large property, a swimming pool, a playset, or animals, there is a greater risk of someone getting injured at your house, which could result in a large claim amount.
- If you drive an expensive car, have a lot of cars, have teenagers driving, or drive in high risk areas, an umbrella policy could prevent you from losing a lot more than a car in an incident.
- If your business has a lot of non-employee visitors, or you are in a high risk profession, an umbrella policy adds more protection to your existing liability coverage. Also, if your employees work at job sites owned by other individuals or businesses, an umbrella policy may be wise coverage.
These are just a few examples of ways an umbrella policy can extend your coverage. By thoroughly reviewing your unique liabilities, risks, and priorities, we can help you assess the benefits and drawbacks of adding this kind of insurance.
Make Informed Decisions About All Insurance Policies
It’s very important to understand that an umbrella policy is not carte blanche coverage. It absolutely has exclusions and coverage limits. If you are not carrying appropriate standard insurance, for example, an umbrella policy claim could be denied. They also do not cover your personal injury or damage to your business property. Finally, umbrella coverage does not extend to criminal activity. When exploring your options for additional coverage, always make sure you’re working with an experienced, knowledgeable agent who is willing to review your existing coverage, circumstances, risks, and budget before recommending any kind of policy addition.
Smyrl Insurance is one such experienced and knowledgeable insurance agency. We have been assisting individuals and businesses for over 65 years to make sure they have the right coverage for their specific needs. We educate, nurture, and empower people through insurance so that they can protect what is most important to them in the most effective way. Contact us to review your existing policies and to gain a better understanding of umbrella insurance or any other types of insurance that may benefit you as a homeowner or business owner. We offer personal and commercial insurance to clients in Hatfield, Lansdale, Souderton, Harleysville, and throughout Montgomery County, Pennsylvania.
