Germania Today | Spring 2021

R esearching insurance can be challenging! As you read through options and policy details, you can often think of another question for every answer you find. If you’ve begun to research umbrella insurance in an effort to decide whether or not it’s right for you, you’ve probably got a good list going! To help you chisel away at that list and ultimately make an informed decision, we’ve answered six common umbrella insurance questions! 1. What is umbrella insurance? An umbrella insurance policy is an extra layer of liability insurance that extends beyond the coverage limits of your personal liability coverage, or the liability coverage limits of your auto and home insurance policies. Umbrella insurance is designed to pick up where your other policies leave off and protect your assets. 2. How much umbrella insurance do you need? To answer the question, How much umbrella insurance do I need? you have to first estimate the value of your assets. This includes the value of your home, vehicle, investments, and savings.

accident for which you are liable. It provides coverage that extends beyond the limits of your personal auto liability. However, depending on your carrier, there may be certain vehicles that are excluded from coverage. Such vehicles might be high-performance super cars, such as a Lamborghini or Ferrari. 4. Does umbrella insurance cover rental property? If you are a landlord, or own rental property, umbrella insurance may cover some of your property, depending on the carrier and policy. Personal umbrella insurance policies generally aren’t designed to cover the risks associated with someone who owns many large rental property units. For this reason, you might find that your umbrella policy would cover a small number of units. 5. Do I have to have an existing policy with an insurance company to get umbrella? While the exact requirements for underlying or coverages will vary from company to company, you typically have to have some sort of existing coverage with a carrier before they will write an umbrella policy. In some cases, they may require that you have both home and auto, but it is also possible that they will only require one or the other. However, regardless of which type of policy they require, you must purchase the amount of liability required by the company guidelines to qualify for umbrella. 6. Does everyone in my house have to have insurance for me to have an umbrella policy? While umbrella insurance policies provide additional liability coverage for you, the insured, it also provides coverage to your family members. For the purpose of these types of policies, “family member” is defined as a resident of your household who is a relative, which can include a ward or foster child, or someone who is under the age of 21 but under the care of another insured who is age 21 or over. Read the full blog at blogs to get answers to more commonly asked umbrella coverage questions. To learn more about Germania’s brand-new umbrella insurance products, reach out to your local Germania agent today!

Then, you need to understand the limits of your existing liability coverage. If the total value of your assets exceeds your underlying, or existing, liability coverage limits, then you likely should consider umbrella as a way to make up the difference. Finally, think about your personal level of risk, which is based on your occupation and lifestyle. You can get a general sense of your own risk by considering the aspects of your lifestyle that could potentially be a cause for damages to others. If you need assistance evaluating your assets or your level of risk, it is always a good idea to consult a financial adviser. In general, it’s always better to carry more coverage than you think you might need. While that may be cost-prohibitive in some scenarios, umbrella insurance is typically quite affordable. That is to say, the premium you would pay for a large amount of coverage is probably lower than you’d imagine, and certainly can be more affordable than if you were to have the same amount of coverage with an underlying policy. 3. Can umbrella insurance cover auto? One of the most common uses for umbrella insurance is protecting yourself from damages caused by an auto

Spring 2021 | 5

Made with FlippingBook - professional solution for displaying marketing and sales documents online