What Coverages Do Rental Property Policies Provide?
A personal umbrella insurance policy provides coverage designed to protect you from large liability claims that could be devastating to your financial situation. The policy allows you to choose the limits you need to cover gaps in your standard insurance policies and provide protection against personal injury. Personal insurance covers things like bodily injury, personal injury, property damage, and landlord liability. It typically does not cover personal belongings, business losses, intentional criminal acts (like vandalism), or written or oral contracts.
While your primary insurance policies generally carry liability coverage, these limits can quickly become exhausted during a major event. For example, if you’re at fault in an auto accident and the other driver experiences significant injuries, your auto liability limits might not cover medical expenses. A personal umbrella insurance policy can extend this coverage to take care of the additional costs. Still, umbrella insurance does more than provide secondary coverage. The policy is used as primary coverage when gaps exist in your standard insurance policies.
Additional Liability Coverage
Many people mistakenly think that umbrella insurance isn’t for them because they don’t have expensive possessions or property. However, there are situations where standard policies don’t cover the full scope of damage caused by accident. A personal umbrella policy can provide additional coverage beyond your standard liability on any of the following personal policies.
- Recreational vehicles
Your umbrella insurance provides liability coverage. There are some instances in which you might need liability coverage that isn’t offered by standard personal insurance policies. Your umbrella insurance can provide coverage for significant non-business liability claims not covered by your other policies like libel, slander, and defamation of character.
Legal expenses can add up quickly. Your umbrella insurance will provide coverage for the following legal costs if you need defense for a covered claim.
- Defense costs
- Interest on unpaid judgments
- Premiums on appeal bonds
- Reasonable costs incurred by your insurance agency or reasonable costs incurred by you at your insurer’s request
Limits and Deductibles
Personal umbrella insurance limits vary widely. In fact, you can get limits ranging from $1 million to $50 million in coverage. Deductibles often apply to a covered claim when there is no underlying coverage.
When you’re facing such a big range of coverage, finding exactly what you need can seem difficult. The experienced independent agents at LoPriore can help you determine the exact amount of coverage you need. At LoPriore, our motto is insurance that fits your lifestyle. We’re passionate about insurance products and providing our valued customers with the service they deserve. That’s why we always take the time to listen to your needs and explain all of the options available to you. Our independent insurance agents have the advantage of working with several insurance companies, which is why we can provide you with the very best coverage at the most competitive prices.
How Much Do Personal Umbrella Policies Cost?
The cost of an umbrella insurance policy will vary depending on your desired coverage, where you live, and the amount of risk gauged by the provider. However, it is not as costly compared to most other insurance policies. For instance, an umbrella policy with a $1 million coverage will cost you about $150 to $300 annually. For double the coverage, you would have to pay approximately $75 more each year.
Most umbrella policies are offered in million-dollar increments, so getting even the minimum coverage of $1 million can provide you with ample protection. A quick way to determine how much you will need is to calculate the value of all your assets and compare this against your current liability insurance. Our team will gladly help you with any necessary computations, should you be interested in getting an umbrella policy.
What May Affect the Cost of My Insurance?
Several factors can affect the cost of your umbrella policy. To help you get a better understanding of how prices are determined, here are some of the most common considerations made in doing so:
Insurance rates vary by state and city, and the same principle applies for personal umbrella insurance. In Massachusetts alone, the costs can vary significantly from one city to another.
- Risk Profile
The cost of your insurance can also be affected by the amount of risk you are exposed to based on your lifestyle. For example, if you have things like swimming pools or trampolines in your home, these may pose a risk for injuries. Our insurance agents can help you determine your risk level as you discuss your policy options.
- Credit History
Your credit history may also play a role in determining your insurance cost so that poor credit history may equate to a higher cost. This serves as a way to gauge how risky it is to insure you, so the better your credit standing, the higher the chances that you can reduce your insurance costs.
- Value of Assets
The extent of coverage you will get for your umbrella policy ultimately depends on how much additional protection you want to put on your assets. Still, ideally, your policy should be greater than or equal to your net worth. Naturally, a higher coverage amount will cost you more.
Aside from these, your desired coverage amount and the insurance company you choose will also affect the cost of your insurance. Our agents can help you compare prices among our many insurance partners to help you decide which you want to get.
How Can Residents Obtain a Personal Umbrella Policy?
Umbrella policies act as added protection to your primary insurance policies, so most companies require that you have your homeowner’s, auto, renter’s, condo, or rental property insurance policy before you can get one. Depending on the company where you choose to get your umbrella insurance, you will typically need a minimum amount of liability insurance from any of these policies.
If you are interested in getting this type of insurance, you can start by assessing how much coverage you want to add to your policy. After, you can contact any of our independent agents to help you get started. Some insurance providers may offer you discounts if you have a pre-existing insurance policy with them and choose to get your umbrella policy from the same provider.