Why You May Need Umbrella Insurance

When it rains, it pours, the old saying goes. It’s something that’s especially true for major accidents. Sometimes, standard homeowners insurance may not be enough to protect you against seven-figure claims arising from a catastrophic incident on your property.

That’s when umbrella insurance kicks in.

Normally sold in increments of $1 million or more, umbrella insurance will protect you when basic homeowners insurance policies have been exhausted.

Umbrella insurance also has the added advantage of “dropping down” to cover any gaps in your existing policies.

While this may sound like insurance for millionaires, it’s actually very affordable. A $1 million policy for an average family will generally run between $200 and $250 in annual premiums.

So who needs umbrella insurance? Well, just about everybody who owns their home, but especially anyone who meets at least one of the following criteria:

• Own rental properties or multiple homes 
• Have children or responsible for the children of others (such as babysitting) 
• Involved in homeowners associations, civic activities, or a board of directors 
• Own a pool, hot tub, or swing set 
• Shared ownership or access to docks, lakes, or vacant land 
• Use or allow your children to use social media sites like Facebook and Twitter 
• Own animals or care for others’ animals 
• Have retirement accounts, investments, or other assets worth protecting 

If any of the above apply to you, consider buying umbrella insurance. Call Hunter Insurance toll free at 1-800-696-4678 or e-mail us at info@hunterinsurance.net

Avoid at Your Peril

When reviewing your homeowners policy’s exclusions, buy supplemental coverage to cover the risks that pose loss concerns. For example, flood insurance is never included in the standard homeowners policy, but coverage is available from the National Flood Insurance Program.

Without a special rider, sewage backup is also usually excluded from homeowners policies; however, it should not be overlooked. For a relatively inexpensive amount, homeowners can avail themselves of enough coverage to fill one of the most common gaps that homeowners face during storm season.

It is often the case that, as local sump pumps empty water from flooded basements into the overtaxed sewer system, sewage can back up into homes even with no previous damage.

For more information on purchasing flood insurance, contact Hunter Insurance at 401-769-9500.

NOTE: A “named perils” homeowners policy is more narrowly defined and not necessarily less expensive than a broader “all risks” policy.