Comprehensive Coverage: Why You Need an Umbrella Policy

March 28, 2017 2:55 pm


April showers bring May flowers – and a lot of sopping wet clothes. Of course, everyone knows the best way to protect your clothes from the ravages of spring rains is a high-quality umbrella that offers plenty of protection and coverage. But what a lot of people don’t realize is that an umbrella policy can provide the same protection for their assets. In fact, while there’s a good chance you’ve heard the term “umbrella policy” bandied about, there’s an equally good chance you’re not clear on what an umbrella policy really is or the level or protection it can provide. Let us clear up the confusion.

What is an umbrella policy?

An umbrella policy is an “add-on” that’s available for some types of basic insurance, including homeowner’s insurance, auto and boat policies, commercial insurance and business owner’s policies (BOPs). Umbrella policies provide comprehensive coverage and additional liability protection for losses that exceed the coverage provided by the basic policy. For instance, suppose your policy provides maximum coverage of $250,000, but someone is awarded a claim of $500,000 in damages. Your policy will pick up the first $250,000, but you’d be responsible for paying the rest. Think a $500,000 claim is unlikely? Think again. Claims amounts are on the rise, and with the increased costs of medical care (and even property repairs), it doesn’t take much for claims to soar to levels well above your policy maximum.

In addition to the additional coverage, umbrella policies also provide coverage for types of liability not necessarily covered by other types of insurance, including claims of slander, libel and false arrest. And, they can provide important coverage for rental properties as well.

Is umbrella insurance expensive?

For all the coverage an umbrella policy provides, you’d think it would be expensive. But guess what? Because umbrella coverage are in addition to your regular policy, they can be surprisingly affordable – and a great investment in your financial protection and your peace of mind. Although the specific cost of a policy will depend on lots of factors, chances are, you’ll be pleasantly surprised by how inexpensive it can be to have truly comprehensive coverage.

Want to learn more about umbrella policies and how comprehensive coverage could benefit you and your loved ones? Atlantic Pacific Insurance can help. Our agents are skilled in assessing our clients’ insurance needs and making policy and coverage recommendations designed to protect them, their loved ones and their lifestyles. To find out more about umbrella coverage or to have your current coverage options reviewed, call Atlantic Pacific Insurance at 800-538-0487 and talk with one of our agents today.

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