What is an Umbrella Insurance policy?
An umbrella insurance policy is a policy that provides additional liability insurance in case your primary insurance policies’ liability limits are not sufficient. It is a great way to be protected from a financial disaster in case your liable for more than your liability limits on your insurance policies. For example if you injure somebody in an auto insurance policy and you have coverage up to $250,000 for bodily injury for each person and if the $250,000 is not enough to cover the damages you caused to the other party than you will have to pay the rest if you don’t have an umbrella insurance policy. An Umbrella insurance policy will provide additional liability coverage over all your insurance policies (as long as they are listed on the policy). Therefore, if your have a liability claim that your homewoners insurance or rental property policy covers than your umbrella insurance will cover the additional amount up to the limit of the umbrella policy. Since it provides additional coverage over all your existing primary policies it is called Umbrella insurance.
How much additional liability does an umbrella insurance policy provide?
That depends on the coverage you select. Umbrella policy provides an additional $1 million to $10 million liability coverage over your existing primary policies’ liability coverage.
Do I need an Umbrella policy?
Since it is impossible to predict what occurrences may happen in our futures it is difficult to say that you definitely need an umbrella policy. However, it probably is a smart idea to have additional coverage if the cost of the Umbrella insurance policy is within your budget because it will provide you so much more liability coverage than what you current have if you don’t have umbrella insurance. This is especially the case if you want to protect the assets that you have worked hard to earn your whole life.
Additionally the cost of an umbrella insurance is very affordable (The cost is usually only a few hundred dollars a year) which is very reasonable considering the amount of additional liability ($1 million or more) you are obtaining.
Do I qualify for an Umbrella Insurance policy?
To qualify for an Umbrella Insurance policy with Farmers Insurance you will need to have all of your insurance policies that you want the umbrella policy to cover with Farmers Insurance as well (Most commonly your auto and homeowners insurance and perhaps your rental property policies). You also have to have your underlying liability limits up to a certain level. This is so an insured can not carry low limits of liability and have an umbrella insurance policy over that. The minimum levels of liability necessary to qualify for a Farmers Umbrella Insurance policy is $250,000 per person and $500,000 per occurrence for bodily injury liability and $100,000 liability limit for property damage on your auto insurance policy. (However, you do obtain a better rate on your umbrella policy if you increase your bodily injury per person to $500,000). For your homeowners policy and for your rental property polices your personal liability coverage has to be at least $300,000. (Again you can obtain a better rate on your umbrella policy if you increase your personal liability coverage to $500,000)
How can I obtain an Umbrella Insurance policy?
Talk to the umbrella insurance experts at the Kitajima Insurance Agency! Our goal is to help make insurance easy to understand and to protect you from any extreme and unfortunate situations that may occur in the future. Remember just a few hundred dollars a year gives you at least an additional $1 million worth of liability coverage. How much are you covered up to today?
Please call (800-875-8712) or fill out the form below to see how you can protect yourself with an Umbrella Insurance policy from Farmers!
Personal Umbrella Insurance Quote Request Form
“We have used Dan Kitajima’s Agency since we moved to Orange five years ago and have been very happy with the service Dan and his staff provide. They always respond promptly to our phone or email requests for information, provide helpful answers to our questions and follow-up with us when needed with a timely phone call or email.
We especially appreciated their help when we were evaluating our policies to see what upgrades in coverage we might need. They carefully explained additional costs as well as any discounts available and made what seemed an overwhelming amount of choices easy to decide. An A+ agency for service as well as insurance product.”
C.E.
Orange, CA
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