Getting started with Umbrella Insurance is simple.
Why do I need umbrella insurance?
Without an umbrella policy, you could be putting your house or another financial asset at risk in the event something goes wrong beyond your control. Additionally, liability claims are expensive and without coverage, it could take months, even years to pay off the judgment.
Securing yourself under an additional policy can be critical. With umbrella written through Elephant, you’ll receive an extra layer of affordable protection to keep your personal assets and future earnings safe.
What is umbrella insurance?
If the cost of a certain claim exceeds the limits of an existing insurance policy, umbrella coverage extends liability to protect your assets, keeping you from paying the expense out of pocket.
Umbrella insurance is designed to help cover expenses if you are held responsible for something that happened out of your control, but not everything is covered. The following instances will not fall under an umbrella policy:
- Damage to your personal property.
- Business losses.
- Criminal actions.
What does umbrella insurance cover?
Umbrella insurance covers excess liability beyond your basic policies. Instances that are not normally covered by auto and home insurance, such as false arrest, libel and slander, are covered under an umbrella policy. Here are a few examples that are covered:
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.
Rental Property Scenario – 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 can I learn more?
Call 855-756-7869 today if you’re interested in an umbrella coverage policy through Elephant. Our licensed agents will be happy to discuss more information on umbrella insurance, policy options and quotes.