Getting started with umbrella insurance is simple
You might be thinking, “I need another type of insurance?” Truthfully, our traditional plans keep you covered for almost every situation. However, we know some of you like to be even more prepared—we’re looking at you, “expect-the-unexpected”-ers. That’s why it’s important to us to provide options for coverage in even the most extenuating circumstances.
What is umbrella insurance?
Umbrella coverage expands your current insurance plans in case your situation exceeds the limits of your policies. It’s inexpensive coverage that covers life’s expensive unpredictable events. At Elephant, we’ve partnered with RLI, a leading provider of Umbrella Insurance. RLI provides coverage that helps their customers protect their most valuable assets when the unexpected occurs. This extra protection is available in $1 million increments up to $5 million.
Do I need umbrella insurance?
Umbrella insurance isn’t required by law, but is most often purchased by people who own a home or have a high chance of being sued. You may want to purchase umbrella insurance if you:
- Own property
- Have significant savings or other assets (retirement)
- You have an inexperienced driver on your auto policy
- You have a family pet
- You frequently host parties in your home
What does your umbrella insurance policy cover?
Umbrella insurance covers excess liability beyond your basic auto or home insurance policies. Additionally, instances that are not normally covered by auto and home insurance, such as false arrest, libel and slander, are covered under an umbrella policy. Umbrella insurance extends your liability coverage to protect your assets, keeping you from paying the expense out of pocket.
Umbrella insurance may cover:
- Your vehicles
- Small boats
- Vacation homes
- Rental properties
- Antique vehicles
And here are a few examples of when umbrella insurance comes in handy:
Injuries to other people if you are at fault
Example: An insured policyholder’s teenage son was driving in a car with his sister and her friend when all of a sudden he lost control of the vehicle, hitting a telephone pole. The friend suffered severe injuries, and the claim was settled for more than the insured policy holder’s auto insurance would cover.
Without the umbrella policy, this individual would’ve had to pay nearly $1 million out of pocket to cover the damages.
Example: A man without umbrella insurance was renting a property to a tenant. One night, the tenant and his friend accidentally hit the gas line while working in the basement. The gas company came to inspect the situation and ordered the tenant and his friend not to return to the basement. Unfortunately, the two disobeyed orders, the gas line exploded, and the men had to be taken to the hospital.
Because the claim exceeded the insured homeowner’s policy limit, he was expected to pay $310,000 out of pocket in damages – an amount that could’ve been avoided with an umbrella policy.
Motorcycles on the road
Example: A 76-year-old insured pulled forward out of her driveway, making a left turn into the path of a motorcycle, which was coming out of a curve. The operator of the motorcycle applied his brakes and “laid it down,” but struck the quarter panel of the insured’s vehicle. The insured was cited for traffic violations. The motorcycle passenger (wife of the motorcycle operator), sustained serious injuries. The motorcycle operator suffered a fractured finger and abrasions and had a valid “bystander’s claim” under state law.
The umbrella policy contributed $640,000, the amount above the primary policies.
How do you purchase umbrella insurance?
- Call 855-756-7869 to quote, and one of our insurance specialists can walk you through the process.
- Or get a quote online!
Other popular insurance options to consider
By adding umbrella insurance you are protecting your home and your financial security. However, is everything covered? You may qualify for bundling discounts when you purchase multiple policies from Elephant.