Umbrella Coverage Information
Having layers of protection within your insurance portfolio can be an invaluable investment. Although standard policies like auto insurance and homeowners’ coverage can be sufficient in many situations, you may encounter circumstances in which you need additional assistance. This is where umbrella insurance comes into play.
For two decades, Two River Benefits Consultants has been helping people in the Tinton Falls area assess their insurance needs and build optimal policies, including umbrella coverage.
What Does Umbrella Insurance Cover?
Generally, this coverage serves as backup insurance if standard homeowners’, auto or boat policies lack sufficient coverage to manage losses or damages. Most umbrella insurance will be able to render aid for the following expenses that exceed your policy limits:
- Medical costs—Your coverage may assist with health care and treatment expenses if another party, such as a neighbor or guest, is injured, and you are held responsible.
- Property damage—Umbrella insurance can be vital in paying for repairs or the cost of replacing property that you are responsible for damaging.
- Reimbursement—If you are at fault for an incident that results in someone being unable to work or requiring disability benefits, your umbrella policy may be able to help recoup their losses.
- Legal costs—If a lawsuit is filed against you and your legal expenses exceed your coverage limits, umbrella coverage can help provide additional funds to maintain your defense.
- Personal and advertising injury—If your losses from inflicting personal or advertising injury, such as libel, slander, invasion of privacy or defamation of character, exceed your coverage limits, your policy may provide further financial assistance.
How Much Umbrella Coverage Do I Need?
If you have significant assets or additional exposures that could increase your chance of being sued, such as having a pool or pond on your property, regularly hosting gatherings, employing household staff or boarding large animals, you may want to consider umbrella coverage.
When considering how much umbrella coverage to purchase, take the following steps:
1. Calculate the value of your assets and property, including your home, savings, stocks and retirement funds.
2. Consider your current policies and determine how much additional coverage you would need to replace your assets following a total loss.
3. Factor in potential future income if reputational damage or a long legal battle negatively impacts your career prospects.
Your umbrella policy should include enough coverage to recoup losses that the rest of your insurance portfolio cannot.
Who Is Covered by an Umbrella Policy?
Much like other coverages, umbrella policies are only applicable for incidents caused by certain parties. In general, most coverage will include:
- Relatives or dependents living with the policyholder
- Others named specifically in the policy’s declarations
Get the Right Coverage
Having a robust and diverse collection of insurance policies may not always be enough to protect you from damages and losses. An umbrella policy can provide an additional safety net. Without an umbrella policy, an unexpected incident could result in out-of-pocket costs that have irreparable ramifications for your financial future.
The insurance experts at Two River Benefits Consultants are here to help. Our agents will use their knowledge and dedication to help your business assess its coverage needs and work with you to tailor an optimal umbrella policy.