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Wood River Insurance Blog

All You Ever Wanted to Know About Insurance

Umbrella Insurance

If any of these things happened to you, there's a good chance your current liability limits wouldn't be adequate to protect your assets—or your future earnings.

How an Umbrella Policy works.

An umbrella policy provides an additional layer of liability protection that can in most cases be used with any policy from another insurance company, including boat, motorcycle, all-terrain vehicle and snowmobile. It kicks in when the underlying or primary policy doesn't provide sufficient liability protection.

A $1 million Umbrella policy, in most cases, may be less than $200 for an annual policy.

Who could benefit from an Umbrella Policy?

Customers who:
• Drive a car or let someone else use their car
• Host dinner parties or other gatherings
• Participate in carpools or other group activities
• Own a home, rental properties or multiple residences
• Have young drivers in their household

What instances use an Umbrella Policy?

Nearly 85% of Safeco’s payments on umbrella claims are related to auto accidents, and over the past 12 months, 30% of those claims involved a pedestrian, motorcycle or bicycle. Below are a few examples of recent claims, all of which required a payout of more than $1 million. That’s much higher than any auto policy limits, so consider what might be right for you as limits can go up to $5 million.

• Customer hit gas instead of brake by mistake and ran through the front of a restaurant,  seriously injuring several people.
• Customer didn’t see a motorcycle and pulled out, causing the motorcyclist to hit the side  of the customer’s car.
• Customer’s car went off the road. The driver overcorrected, causing the vehicle to roll  multiple times.
• Customer’s son was allegedly driving under the influence and hit a bicyclist.
• Customer accidentally set a fire in his apartment which spread to other units.

What makes an Umbrella Policy a great choice for you?

You can select from $1 million to $5 million in additional liability coverage. Wood River Insurance can help you select a "true” umbrella while many other carriers only offer an "excess" umbrella product. A “true” policy means it may cover other losses that otherwise would not be paid at all such as an auto accident in another country or libel or slander.

You also may be eligible for a discount on your homeowners policy when the umbrella is written with the same company.

Call us today at 208.788.1100 to discuss if an Umbrella Policy is right for you!

 Read more February Newsletter Articles here >