Gilbert’s Guide to Umbrella Insurance

This April you may need an umbrella for more than just a rainy day. Here’s a scenario — you’re taking your kids to an afternoon movie when they start fighting in the backseat. Your attention shifts from the road to them for a brief moment and before you know it, you’ve rear-ended the car in front of you. Of course, you had to hit a luxury BMW, fully equipped with the latest technology, and the cost of repairing the damage is extensive. You ask yourself, “Will my auto insurance fully cover this unforeseen encounter?” Your personal auto policies will have limits, but having an umbrella insurance policy can help give you peace of mind.

Here at Gilbert, we want to make sure our clients are prepared for everything. In many cases, an umbrella insurance policy can help do just that. Not exactly sure what an umbrella insurance policy is? Don’t worry, we’ve got you covered. Here are some answers to commonly asked questions about this affordable, yet important additional coverage.

What is umbrella insurance?

An umbrella insurance policy provides additional coverage or “excess liability” above the limits of your basic policy, such as your personal auto insurance or homeowners insurance policy. If you file a claim that isn’t completely covered by your homeowners or auto insurance policy, your umbrella insurance can kick in to cover the rest. Umbrella policies also provide a broader form of coverage that can help cover legal fees, false arrest, libel, and slander.

Is it expensive?

One of the biggest misconceptions about an umbrella insurance policy is that it is going to break the bank. That’s not the case. An umbrella insurance policy with up to $5 million dollars in coverage can cost as little as $200 for the year — that’s about $16/month!

Shouldn’t my current coverage be enough?

If you are sued for something that happens on your property or an accident involving your car, you could be on the hook for exorbitant medical and legal fees as well as property damage expenses, some of which may exceed your current policies. Having an umbrella insurance policy gives you peace of mind in knowing that you are covered when you are dealing with an unfortunate accident.

When should I consider an umbrella insurance policy?

We have found that the added protection of a personal umbrella insurance policy makes sense for most of our clients, especially when you consider the protection you get for the price of the policy. While there are several reasons why having a personal umbrella insurance policy could be beneficial for you, here are some risks or exposures that are particularly compelling reasons to have extra coverage:

• Having a swimming pool, trampoline or hot tub
• Owning a boat, motorcycle, or RV
• Entertaining frequently
• Owning a rental property
• Having a dog
• Having a teenager (not kidding!)

While you can never plan for these types of accidents, you can prepare for them.  Umbrella insurance offers you added coverage and peace of mind — let a Gilbert team member analyze your insurance needs and give you a recommendation on the value of having a personal umbrella insurance policy today.

Have more questions about personal umbrella insurance? We’re happy to help. Give us a call (781) 942-2225 or visit our website. And if you’re in the neighborhood feel free to stop by our office at 137 Main St. Reading, MA 01867.