With what policies can you purchase umbrella insurance?

With what policies can you purchase umbrella insurance?

Umbrella insurance is a secondary policy, meaning you can only purchase it after you purchased the main policy, such as home or renters’ insurance. This secondary insurance adds to your liability coverage. Associated American Insurance serving Manchester, NH offers this useful insurance that can help protect you from large-scale financial loss.

Policies That Can Add Umbrella

You can only add umbrella coverage to primary insurance that includes liability coverage. Those policies include:

  • Home,
  • Commercial,
  • Auto,
  • Motorcycle,
  • RV,
  • Renters.

You can’t add it to health, life, accidental death, and dismemberment, or other such types of insurance.

How Umbrella Insurance Works

When you file a claim on your primary insurance, it may exhaust your liability coverage on that policy. Umbrella takes up the slack.

For example, your mother-in-law falls down the steps at your home. She breaks her leg and needs to go to the hospital. Your liability insurance coverage in your home insurance may cover a small portion of the cost. You might have $100,000 of liability coverage.

Your elderly mother-in-law cannot live by herself with a broken leg, so she needs to temporarily stay in an assisted living center. She also has to go through physical therapy after the cast comes off. This lets her re-strengthen her leg and practice walking. This rehab costs a pretty penny. Your liability coverage on your home covered a lot of the expenses, but unless you have umbrella insurance, you must pay the rest out of pocket.

If you have umbrella insurance, this policy kicks in when the main or primary policy’s liability component has been exhausted. So, when the primary liability insurance pays out, the umbrella policy takes over. It pays for the rest of the costs.

You can add an umbrella policy to any primary policy with just a phone call. Contact Associated American Insurance serving Manchester, NH today to further protect your finances.

Who should have umbrella insurance

A lot of myths about umbrella insurance are out there. You may not know precisely what it is and why it is something you should consider. One myth is only the wealthy need to have umbrella insurance and nothing could be farther from the truth. The reality is if you own anything, you are vulnerable to being sued. At Associated American Insurance in Manchester, NH we represent you, not an insurance company. As independent agents, we can offer you choices when it some to carriers and policies. 

Umbrella insurance is a type of excess liability insurance. It is a policy that adds an additional layer of liability protection to a policy you already have. You can’t just purchase an umbrella policy unless you already have a policy with liability coverage. If you are involved in legal action against you, and you lose, your umbrella insurance coverage will kick in when the limit of your policy has been reached. This can be a home policy, a commercial policy, renters, condo, motorcycle, or boat policy. Any insurance that has liability coverage can benefit from the additional layer. 

You may not think you have much to protect and the liability coverage you have is adequate. If you haven’t check what your liability coverage is in a while, it is time to look at it. You might also want to check what the average judgment is where you live. It may come s a shock. 

When it comes to umbrella insurance, it is misunderstood by many. Don’t be one of them. At Associated American Insurance in Manchester, NH, we can sit down with you and discuss if you would benefit from having umbrella insurance. Our team is experienced in this and a variety of coverages you may have questions about. Give us a call or stop by our office. 

Is a personal umbrella insurance a requirement in Manchester NH?

When it rains lawsuits, you need an umbrella to shield you from getting wet. Umbrella insurance or extra liability coverage offers an additional layer of protection when the limits of standard insurance policies like home and auto are reached. 

Do you need umbrella insurance?

While umbrella insurance is not mandatory in Manchester, NH, it is prudent to have one, especially if you have a tight budget on other insurance policies. Associated American Insurance can help guide you on how much umbrella insurance is adequate for you and which perils you should prioritize.

You should buy umbrella insurance if you fit more than one of the following:

  • If you own dogs or any dangerous pet
  • If you own a boat, car, or any other form of vehicle 
  • If you are a youth coach
  • If you are a parent or have parents
  • If you regularly have guests in your home 
  • If you run a business in your home
  • If you own rental properties and other assets

The above activities increase your chances of being involved in lawsuits, even when they may seem harmless. You may think that buying a complete coverage because you own a dog is a joke. Wait until your furry friend bites a stranger or another dog and you are slapped with lawsuits amounting to several thousands of dollars.

When to buy and how much is adequate

Many people prefer buying umbrella insurance from the same provider who processed other policies, and there is a secret reason for this, good discounts. There is no better time to buy insurance than now when everyone is staying at home. To understand how much coverage you should buy, make sure you have answers to the following:

  • Are you exposed to any significant risks?
  • What is your potential loss in case of a lawsuit?
  • Do you know the value of your possessions?

For more information, quotes, or questions, visit Associated American Insurance in Manchester, NH today.