Back in 2017, I wrote about several misconceptions that are common to personal umbrella policies. While these four misconceptions are still true, I thought I would turn this into a two-part series because there are other misconceptions that are quite common. We continue the previous list by adding a few more (along with corresponding explanations as to why each misconception is false):
Misconception # 5: “Umbrellas cover everything, right? My home, cars and all my stuff.
It depends on the exact nature of what you mean. Umbrellas provide extra liability protection in addition to the personal liability protection that is included in homeowners, apartments or tenants. They also provide additional protection over your auto liability limits for insurance. Umbrellas, however, do not provide insurance for physical losses to homes, cars or other "stuff."
Misconception # 6: "I can not get an umbrella for my rental property, right?"  Incorrect! There are many types of personal exposures you can schedule on your personal umbrella. This includes rental properties and watercraft policy.
Misconception # 7: "Umbrella policy is only for rich people."
Again, this is not true. Anyone can be sued for harming another person and someone with minimal assets can be sued in the same way as someone with significant assets. If you intend to keep your assets – no matter how big or small they are – consider buying an umbrella.
Misconception # 8: “I'm a good driver and have never caused an accident, so I probably do not need an umbrella.
While car accidents are a significant part of large claims that trigger umbrella coverage, they are not the only type of claim that does. Do you have a dog? Even those who have never bitten can bite someone for the first time in an instant. Do you have a pool? Accidents can happen. Do you ever serve alcohol to friends or family in your home? Again, accidents can happen.
As I mentioned earlier in part one of this post, umbrella policies are pretty cheap for the amount of protection you get from them. Do not leave it to chance – give the protection you and your family deserve and buy an umbrella policy through your local independent insurance agent today!
The information above is of a general nature and your insurance and coverage provided may differ from the examples given. Read your insurance policy in its entirety to determine your available coverage.
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