Imagine it. The world is in utter chaos. Slowly you raise your umbrella and everything underneath is bright and clear again. It’s not so scary anymore. Why? Because of that umbrella. You’ve added an additional “roof” over your already existing one.
What does an Umbrella Policy do?
It caters to the unexpected, the “oh crap did that just really happen” moment, the “my dog bit the neighbor” moment, the “I promise my kid won’t break your windows with his baseballs again” moment. An umbrella policy is a stand-alone liability policy that extends additional protection to your existing policies.
Okay, but who needs one?
Anyone that has assets that exceed their primary policy’s coverage and anyone that has extra risk with regards to an asset. For example, if your teenage driver regularly borrows your brand new Range Rover, or anyone that owns a rental property
You’ve spent hours making a nice rental home for John. He pays his bills on time and follows the rules of his terms and conditions of rent, until he decides to have a few people over. They get rowdy and decide it’s a great time to try sledding down the stairs, out the door into the snow drift! After a few runs their confidence grows and they become cocky, trying to flip and spin. One of John's friends comes barreling down the stairs and slams right into the doorframe, cracking open his head. He’s rushed to the emergency room where he makes a full recovery. However, he’s now left with a hefty bill. So, he decides to sue you because its your house, not John's. John is simply renter. What do you mean he sues you?! You weren’t even there! Well, he just so happened to be on your property, which in turn makes you legally liable at ANY TIME.
And the same goes for your car. You’re out for a joy ride on a snowy Colorado day and you can’t slam on your breaks fast enough and you end up in a pile up that you’ve caused. Again, you are the one who is at fault and liable to the damages.
Makes sense, right?!
To find out if you should add an umbrella policy to your coverage, please reach out anytime.
Paige Schiller
Comparion Insurance Agency, a Liberty Mutual Company
440-264-2930, option 1
Paige.schiller@libertymutual.com
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