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Don't Forget Umbrella When Thinking About Coverage Needs
Umbrella insurance offers liability coverage above the limits of your underlying policies, such as home and auto. You also can get an endorsement on your umbrella policy to provide additional coverage for you if you are injured by an uninsured or underinsured motorist – a risk that we discussed in the January 2016 issue of Insurable Interests. Virtually all of our clients have at least some level of umbrella coverage.
However, because umbrella coverage is not the first coverage to respond, it can be relatively easy to put it in place and then not think too much about it. You might discuss it as part of your annual insurance review, but it is critical to revisit your umbrella policy, especially the limits, whenever your life situation changes.
These changes can include an increase in your net worth. For example, have you recently sold your business and realized an infusion of cash? Gotten a new job, a big promotion or an inheritance? You also might have an experience that increases your exposure or visibility: Did you recently get married or have a child or grandchild? Did you buy a new home or add a swimming pool? Did you buy a boat or a plane? Did you decide to run for office or become a youth sports coach or counselor? Have you traded in the minivan for a Lamborghini? These and similar events can have a significant impact on the umbrella liability limits you might need.
Another consideration is the endorsement for uninsured/underinsured motorist coverage. As we noted last month, more drivers than you might think either have no insurance or have the bare minimum of coverage – which very well might not be enough to cover your medical expenses if you are injured in an accident in which such a driver is at fault. In fact, in Florida, almost one-quarter of drivers have either no insurance at all or extremely low limits of liability coverage. You should consider whether the limits of your endorsement are sufficient.
At The Bensman Group, we believe in the importance of talking regularly with our clients so that we are up to date on any changes in their situation. But we also rely on clients to let us know when things change, so that we can help you understand whether and how those changes might result in the need for changes in your policies.
If you would like to talk to us about your umbrella liability policy, or any aspect of your insurance coverage, please contact us at 847-572-0820 or firstname.lastname@example.org.