Umbrella Insurance

What would you do if a catastrophe struck and caused damage or injuries beyond the terms of your home or auto insurance? The solution to this question involves a type of coverage that is becoming more popular: the umbrella policy.

An umbrella provides high limits of liability to protect you against a catastrophic liability loss. It pays after your homeowners or personal auto policy's limits have been exceeded. For example, a major car accident in which you severely injure several persons can result in damages easily exceeding your personal auto policy's liability limits. Losses that result in injuries to numerous people, head injuries, and death are often covered by a personal umbrella policy. In addition to providing higher limits, this policy normally pays for some losses not covered by the underlying policy, such as legitimate allegations concerning libel or slander.

Once, umbrella insurance was mainly a product in the service of the very wealthy. Today, with large awards for lawsuits becoming increasingly commonplace, umbrella insurance is becoming a strategy for middle class individuals who, due to the run-up in property values, may be rich “on paper.”
Individuals should consider purchasing a personal umbrella policy if any of the following apply:

• Their total assets in exceed their underlying liability limits.
• They are financial responsible for a young or inexperienced driver.
• They own or operate an aircraft or boat.
• They own a swimming pool or trampoline.
• They own waterfront property, a farm, or a ranch.

Rates for umbrella policies can be surprisingly affordable. Call our office today at 978-465-5301 or email us at apage@arthurpage.com to learn more about whether umbrella insurance is a good fit for your particular situation.

Please Note:
These are general policy descriptions to help you understand the different types of coverages. They do not refer to any specific contract of insurance, and they do not modify any definitions expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.