Due to the no fault changes effective 7-2-2020, we have been writing more Umbrella polices. The reason is that more drivers will no longer have the unlimited medical protection, and also the new reform allows for lawsuits, even in the event that the other driver is at fault.
The Umbrella is a true excess policy providing coverage over your personal homeowner’s insurance, auto insurance, and any other recreational vehicles you own.
It can cover your vacation home, rental properties, boats, and other exposures you own. The question I hear is what limit of coverage should I carry? Umbrella start at $1,000,000 limits and go as high as $10,000,000.
Lawsuit payout can be huge. We have paid out $3,000,000 on a $5,000,000 umbrella in our office. There was a case where $8,000,000 was awarded for a vertebra injury after a simple fall from a porch.
The Umbrella policy does require you to carry specific minimum amounts of coverage on your homeowners and auto policies before the Umbrella policy kicks in. Coverage on your Umbrella policy is worldwide. An Umbrella policy includes Personal Injury coverages. Non owned Watercraft liability is included.
Who should carry an Umbrella policy?
You should, if you want protection from lawsuits and have a home, auto, or recreation vehicles, a boat, or any rental property.
If you need personalized insurance coverage, call us for a Free Quote! 517-546-0140