What is Umbrella Coverage and Why you Need it

What is it?

No we are not talking about buying insurance coverage for the umbrella sitting in your closet. Personal Umbrella coverage is liability coverage that kicks in when the liability coverage you have on your existing auto or property policy is exhausted. It helps cover legal fees associated with liability claims and has the ability to drop down and cover you where your primary policy might have an exclusion or when the limit on your main policy runs out.

Why do I need another policy?

Do you…

  • Have a teenage driver in your home?
  • Own property in the US?
  • Own a home, rental property or cottage?
  • Own a boat or recreational vehicle?

If you said yes to any of the above you should consider a personal umbrella policy. The size of court awards has increased and lawsuits are more frequent. The standard limits offered on most property and automobile policies are often not enough.

Consider the following everyday situations:

  1. Auto Accidents. Auto accidents are a common occurrence with an estimated 160,000 occurring in Canada each year (with approximately 2,900 of those accidents resulting in death. Despite this, base policy limits are relatively low with most companies offering a maximum of $2,000,000 liability coverage. This coverage can quickly be used up if there are multiple, life threatening or life altering injuries.
  2. Social Media. Writing an online negative review of your local restaurant, a business or a product might seem like a great idea but it does not take much for such reviews to be shared with thousands of people. These negative reviews can have a huge impact on a person or business and can result in you being sued to recover those costs.

Contact our office for more information on how you might benefit from a Personal Umbrella Policy.