Nothing makes you feel like an adult more than shopping for insurance. That’s not necessarily a bad thing, it shows responsibility and brings you and your family peace of mind. But there’s a lot of insurance products out there; for cars, houses, boats, even umbrellas?

Not exactly, but if you do have a very fancy, high-tech umbrella, decorated with diamonds, then you can (and should) insure that umbrella, under your umbrella policy. This article explains…

WHAT IS UMBRELLA INSURANCE?

Your existing house or auto insurance policies may be limited, but they are extendable with an umbrella policy. Meaning, if you're ever faced with a claim or litigation that exceeds your liability coverage, then an Umbrella policy will pay the difference!

When you get insurance, you're purchasing a certain level of liability coverage. For many, it's more than enough. For some though, the total sum may not be sufficient to cover all eventualities. Umbrella Insurance can assist by covering the balance.

Umbrella Insurance is designed to supplement another policy, such as your car, RV, boat, cottage, or house insurance, by providing additional liability coverage. Should the liability limits of the above plans be maxed out, the supplementary coverage kicks in.

Additionally, If you own and run a business, Umbrella Insurance can help you and your company stay financially protected.

Umbrella insurance can be purchased to supplement your liability coverage for dwellings and cars you own in Canada. You may cover numerous houses or cars with a single umbrella premium. It's usually less expensive to buy single umbrella insurance that covers many residences and cars than it is to raise liability coverage for each item separately. The amounts for which you can increase your liability coverage vary by insurer, which is why it's beneficial to work with a company like Schwartz Reliance. We've been providing business insurance in Lethbridge since 1927.

ARE COMMON INSURANCE POLICIES NOT ENOUGH ANYMORE?

Thankfully, that’s not the case… at least, not usually. That’s kind of the problem though, the uncertainty! The fact is, the Schwartz Reliance team is really good at their job. You can count on our professionals to find adequate coverage, within your budget. But what’s “adequate”.

Let's look at car insurance as an example. The owner of a brand new SUV valued at $70,000 causes an accident. That SUV, and the other car, valued at $40,000 are completely totaled. In addition, your medical bills extend to $280,000 and the other driver has $45,000 worth of medical bills. In total $435,000 was claimed. That’s ok though because the driver has $2,000,000 coverage.

But that same driver and the same SUV ended up causing a bigger accident. Perhaps hitting a city bus full of people. Now the SUV, and bus are damaged, the driver of the SUV has injuries and 14 people on the bus also have injuries. Now, the total claim is $2,800,000.

The second scenario is far less likely than the first, but it is a possibility. That’s where the confusion over “what’s adequate” comes in.

WHAT DOES UMBRELLA INSURANCE COVER?

Typically, an umbrella policy with Schwartz Reliance provides additional coverage for:

  • PERSONAL INJURY. Medical bills, pain and suffering damages, loss of income, these concerns are less likely to be a problem with an umbrella policy.
  • PROPERTY DAMAGE. This can include damage to another person’s property if you were to borrow a friend's car, boat, or cottage.
  • LANDLORD LIABILITY. Should tenants damage your garage, or destroy the kitchen and its appliances and umbrella policy will cover it, along with loss of rental income, medical, or legal fees.
  • BUSINESS COVERAGE. Many business owners in the Lethbridge area have opted for umbrella coverage because of the unique protection it provides. If customer information is leaked, through hacking or other means you’ll be covered, just as you would be if an employee filed a wrongful termination suit, or a customer was injured in the store.

IS UMBRELLA COVERAGE RIGHT FOR YOU?

It sounds pretty great; extra coverage and the feeling of satisfaction that comes along with it. But it is supplemental insurance, so there’s an additional charge and may never be necessary. To take the risk out of the decision you’ll need to:

  1. Assess the value of your assets. Should your assets be worth more than your liability protection, then it’s likely you’ll benefit from an umbrella policy.
  2. Examine your potential for income loss. This is a big one for business owners, or for people new to their trade. If you have a lot of potential to move up the ladder, significantly boosting your current salary as an entry-level employee, then you may want an umbrella policy to insure that income is there for you.
  3. Determine the likelihood that you’ll be sued. This is another critical consideration for business owners in Lethbridge. There are many unique risks for entrepreneurs. If you believe your chances of being dragged into a lawsuit are high, then you’ll want to consider umbrella coverage.

If you can relate to any of the three points above, reach out. Schwartz Reliance can help you determine if you’ll benefit from an umbrella policy. We can also help improve your current coverage, so the additional policy may not be necessary. Either way, we’re happy to help.