Umbrella Insurance is something that every individual or company should consider to protect themselves against lawsuits. These are supplemental policies that can be used in conjunction with Home or Auto Insurance. They provide extra coverage if you are held liable for more than your primary policies can provide. Burstad Insurance offers umbrella policies throughout Wisconsin.
Most umbrella policies have requirements called retention limits, which indicate how much primary coverage you must pay before your Umbrella Insurance kicks in. It is very similar to a deductible in an Auto Insurance policy. Here is what you need to know about Umbrella Insurance and retention limits before you purchase a policy.
What is Umbrella Insurance? Do I Need It?
Umbrella Insurance is a coverage that can be used to extend liability coverages on your other personal liability coverages. There are also Commercial Umbrella Insurance policies available. While your existing Home Insurance policy will likely cover you in most cases, there are some situations where it may not be enough. For example, if someone gets hurt on your property and sues you, the damages may exceed what your Home Insurance can cover.
Umbrella Insurance steps in after your existing insurance policy has been maxed out. Although you may never use your Umbrella Insurance, it can give you the peace of mind you need. In today’s hectic world, anyone could find themselves susceptible to a lawsuit, so anyone can benefit from Umbrella Insurance. Umbrella policies can also provide coverage for things like libel lawsuits, where your personal policy might not. However, your Home Insurance policy would need a Personal Injury Endorsement on it if this endorsement is not already written into your home policy.
Umbrella Policy Retention Limits
In order to have an umbrella policy, you’ll need a primary policy, like a home or auto policy, to provide underlying coverage. You generally cannot purchase an Umbrella Insurance policy on its own. However, there are specialty carriers where all they do is sell Personal Umbrella policies. This type of company would be one of the few that sell Personal Umbrella Only policies.
Many umbrella policies have retention limits, which specify the amount of money you will need to pay before the carrier releases the remaining umbrella funds to you. These are sometimes referred to as self-insured retention limits.
If you do not pay your retention limits, your Umbrella Insurance provider may decide to deny your claims. Or, they may elect to pay the claims, minus the retention limit. To prevent any future problems, you should notify your Umbrella Insurance provider right away if your primary coverage amount changes for any reason.
Umbrella Insurance is something anyone can benefit from, but it’s important to understand how it works before taking out the policy. Talking with an insurance agent can help you better understand Umbrella Insurance and what you might need. Burstad Insurance offers Umbrella Insurance as well as many other types of insurance policies, with offices in Menomonie, New Richmond, Medford, River Falls, and Chippewa Falls, Wisconsin.
To learn more about Umbrella Insurance, contact Burstad Insurance. Our licensed professionals will be happy to answer any questions you have.