What Should You Look For in An Umbrella Policy?

here's what to look for in an umbrella policy

Home insurance protects you from accidents such as fire and theft. It also covers some legal expenses if someone is hurt on your property, or you damage someone else’s. Similarly, your basic auto insurance policy will cover personal and other’s injuries and property damage.

But if this article is about umbrella policies, why are we telling you about home and auto insurance? 

Umbrella policies provide coverage that goes beyond home and auto. Legal liability is a huge expense, and if you’re liable for expenses that go beyond your basic insurance policies, you will be on the line for a lot of money.

How Much Coverage Does the Policy Have? Is it Enough?

The first thing you need to look for in an umbrella policy is simply enough coverage. How many assets do you want to be covered, and how much are they valued? This can include everything from your home to savings bonds. The more stuff you want to protect, the more coverage you need.

If you’re considering an umbrella policy, chances are you have scoped out potential risks that necessitate the plan. Any accidents you may face at home, work, or in your personal life, need to be accounted for in the policy. 

Make sure that the umbrella plan you are considering covers everything—the last thing you want is a lack of coverage.

Look for a Policy That Covers More Than Your Home & Auto

Following the same train of thought, make sure your umbrella policy covers more than your home and auto policies.

Before you’re eligible for umbrella coverage, you must be enrolled in both home and auto insurance. You’ll have some legal benefits with just these plans — the question is, then, do you need more coverage? If you’ve evaluated your valuables and risk factor, compare them to the benefits provided by these policies before choosing an umbrella plan.

Lookout for Contracts With These Keywords

When choosing an umbrella policy, you need to carefully review potential contracts. The best ones will have these key terms:

  • Pay on behalf: This means your plan will directly pay costs rather than giving reimbursement.
  • Self-insured retention (SIR): An SIR is an out-of-pocket deductible-type payment you must make each time you file a claim. If possible, look for contracts without this.
  • Coverage trigger: Look at what triggers coverage in the policy — it should be available on a daily basis for emergencies.

Call Redwood Agency Group

Choosing your insurance takes a lot of work. Not only do you have to determine how much coverage you need, but you have to find a plan that serves your needs at a good price as well.

You need real people who want to protect what matters most. With our help, we can take your insurance to the next level with confidence. If you want to get started with an umbrella insurance policy, call Redwood Agency Group today at (512) 994-0894.