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What is an Umbrella Policy?

submitted by Rick Meyers, AAA Insurance Broker/Nichole Meyers, Richboro Office, midatlantic.com/aaa.com/Agent/NicholeMeyers

Accidents happen often in the blink of eye.

Turn on the news: drownings in backyard pools, trampoline injuries, inflatable bounce houses going airborne with children trapped inside, and car accidents.

All are incidents we hate to think about or see. All result in injuries or worse.

These situations typically lead to a lawsuit seeking payment for medical bills, rehabilitative therapy, loss of wages, and pain and suffering.

Liable parties can find coverage under their auto/home insurance policy liability limits, however, the standard liability coverage in our home or auto policy is often not enough to pay for the damages that are a result of the above accidents and can leave one severely exposed financially.

Approximately 40 MILLION lawsuits are filed in the United States each year.

No one can predict how much a judge or jury may award the injured parties.

If you are the cause of an unfortunate accident, do you have enough liability coverage on your auto/home policies to compensate the injured parties?

If not, you can be sued and personal assets can be seized.

If you are not sure about your coverage, consult a local insurance agent.

Umbrella insurance is a policy that provides additional liability coverage across all underlying personal lines policies.

Umbrella limits are typically between $1 mil-$5 million.

Often times umbrellas require your home and auto policies to carry a minimum of $250k/$500k liability limits but do offer a multi-policy discount for purchasing the umbrella.

Umbrella policies protect your assets and offer peace of mind and for the coverage provided the cost of a policy is minimal.

Something to note, changes made to underlying policies such as adding a driver or deleting a vehicle must also be applied the umbrella to ensure adequate coverage, which frequently is overlooked.

Consult a local agent for more information.