Wouldn’t it be nice if the old superstition about umbrellas was true – that if rain is predicted on any given day, take an umbrella with you and it will not rain. Even though, on occasion, this tactic may coincidentally work, the reality is that no umbrella can stop the rain from falling. However, what an umbrella is designed to do, and can do very well, is give us an added layer of protection against not just wet weather, but other elements as well, like hail, wind, and even the hot sun when we’ve had enough of that too.
Umbrella insurance is very much like the handy device that it’s named after. This coverage is designed to provide enhanced protection against mishaps that all of us know can happen, but that we don’t have much power to control or to predict when they will happen, including:
While it’s true that having an umbrella insurance policy in place is not going to stop these incidents from happening – just like an umbrella cannot prevent rainfall – what this coverage will do for you is quite powerful. Umbrella insurance can financially protect you, a family member or other dependent from the repercussions of being found at fault for injuries, damages, and even slander. And, just like your nylon and metal rain umbrella that cost you around $10, this insurance is very inexpensive. In fact, you can get an added $1 million worth of liability protection for as little as a few hundred dollars a year. However, your exact cost will be determined by the amount of coverage you purchase, your insurance carrier’s provisions, your risk profile and driving record.
Since the terms of umbrella insurance policies can vary from company to company, you’ll want to work with insurance specialists, like the knowledgeable and friendly agents at Anderson, Bagley & Mayo (ABM), to customize a policy that meets your distinct personal needs. We will identify your risk factors, explore a variety of benefits, restrictions, and coverage options that are available to you from the wide range of quality carriers we represent, and find you the appropriate policy that best fits and protects your life. And, of course, we will search for ways to save you money on your policy, including possibly bundling an umbrella insurance policy with your home and/or auto insurance carrier.
A question we often get from our clients is, “Why do I need umbrella insurance?” Let’s start by explaining why we may have brought up the subject of umbrella insurance with you in the first place. Many of our clients like you participate regularly in high-liability activities, like a long-distance commute to work, driving your kids and their friends to and from after-school activities, or frequently entertaining at your home. What would happen if a serious accident were to occur when you were at the wheel or hosting an event? The end result could be that you are found to be at fault for this accident, held responsible for any resulting injuries or damages, and forced to pay exorbitant medical costs and other related bills.
Other ABM clients have a significant amount of valuable assets, like a boat, a high-value home, multiple cars, and other substantial nonretirement investments. These are all red flags to our team that you could end up being the target of an expensive lawsuit in the event that you were found at fault for an accident or injuries, and thus, that you need an enhanced level of insurance protection.
Even activities that seem as benign as giving your personal opinion – favorable or otherwise – of local business establishments on your social media pages can turn into a nasty legal battle if the owner does not receive your constructive criticism as well as you would like. As your insurance partner, we want to help you consider ways to protect yourself from these situations with products like umbrella insurance.
Other reasons that we may want to talk to you about adding an umbrella insurance policy to your mix of insurance solutions is if you have any of the following:
Umbrella Insurance is definitely not just for the wealthy. In fact, people with very few assets are perhaps even more vulnerable to a lawsuit than those who have many because, in today’s society, suing someone is pretty easy. But, while it doesn’t cost anything at all to initiate a lawsuit, it can cost you enormous sums of money to defend yourself. That’s why anyone who would like to safeguard not only their current earnings, but also their future wages, can benefit from having an umbrella insurance policy.
It is true that you could simply increase the limits of your auto or home insurance policies, but having an umbrella policy will actually provide much broader liability coverage at a far more reasonable premium. Umbrella insurance is also portable – like your trusty umbrella – and when and wherever you travel, even if it’s overseas, you can count on this added layer of coverage to safeguard you from liability.
Starting to think it might be a good idea to talk to an ABM professional about umbrella insurance? Then please call us at (978) 534-5133. Our team will go right to work for you, first assessing your risks and making sure you have at least the minimum required liability insurance on your home and car insurance policies, and then finding you the most affordable umbrella policy available that will meet your needs and protect your assets.