When we think about risks, we often consider the extreme stuff and may overlook the ordinary, everyday risks that we don’t pay any attention to. At August Vincent Insurance Agency in Crystal Lake, IL, we work with our clients to advise them on insurance for managing extreme risks, as well as everyday needs.
Some examples are having pets (especially dogs), owning a pool or a trampoline, renting out part of your home, or sharing your property with guests. These can trigger liability events that may exceed the standard coverage for homeowners or renters, and that’s where umbrella insurance helps.
What Is Umbrella Insurance?
Umbrella insurance is a special kind of coverage that has very high policy limits ($1 milion to $5 million is not uncommon). There are two facets to umbrella insurance, which are:
- It provides additional coverage after a covered claim exceeds the policy limits of your other insurance policies, including your home and auto.
- It often provides specialized coverage for risks that are not offered under other policies you may have.
Depending on your needs, umbrella insurance may help manage risks associated with defamation lawsuits for social media use and other liability-related risks. However, specialized coverage related to cyberattacks typically requires a separate policy, such as cyber liability insurance.
Crazy things can happen. Your big dog jumps on the trampoline, throwing a drunk guest into your pool. It’s your dog, trampoline, and pool, and if you served alcohol at the party, you may have a significant liability if someone is seriously hurt. We are not saying your umbrella insurance will cover such a thing, but it is just an exaggerated example of the types of circumstances you will want to discuss with your agent.
August Vincent Insurance Agency, serving Crystal Lake, IL, can help you find an umbrella policy to extend your liability coverage across your home and auto policies. Contact us to review your existing insurance and get recommendations for umbrella insurance.
