On this rainy day (or week, as the weatherman tells me), my umbrella is essential. Whether you are trekking across campus hauling your textbooks or running errands with your kids, umbrellas will shield you from the worst that the weather has to offer. However, when we start talking about an umbrella insurance policy, we aren’t talking about preserving your hairstyle from the rain and wind. Let’s set up the scenario for you. You have a house and car, and maybe even a boat (we can dream, right?). These big purchases require homeowners, auto, and boat liability insurance. This insurance is there to protect your assets in the event that you are found liable.
However, there may come a time when your liability coverage will not be sufficient. At times like this, you could be desperately searching for that money tree in the backyard to spot you the difference. Has your tree withered up and died long since? Yeah, mine too. Never fear- this is when umbrella insurance kicks in. The umbrella policy provides additional liability coverage in the event that your liability coverage on your home, auto, or boat policy has been exhausted, and is designed to work as protection so you don’t have to pay the difference out of pocket.
Just to make sure we’re clear, let’s set up a scenario. Let’s say that one
day you and another car are involved in a traffic accident while driving on a wet road in Franklin. Your Bodily Injury liability limit on your auto insurance is $500,000, but someone in the other car required extensive medical procedures. The total costs that they acquire are $750,000. Your umbrella insurance would cover the remaining $250,000 that your regular auto liability insurance would not cover. An umbrella policy, much like my yellow umbrella, provides you with an extra layer of protection for yourself and your family…and let’s be honest, who can say no to that? So whether it’s one that protects your freshly-styled hair from inclement weather or one that protects your assets in the event of an accident, never leave your umbrella at home.
By: Dominique Postma