If you’re held responsible for a personal or professional disaster and your current insurance coverage runs out, you may be left high and dry. That’s why umbrella insurance is so important.
An umbrella insurance policy kicks in when you’ve exhausted other existing coverage limits but are still liable for additional losses. This can come in handy, especially if you’re involved in a lawsuit.
A court decision may be so costly—beyond what you have on hand or even in savings—that without an umbrella insurance policy, you’d be financially bankrupt.
Looking for the best umbrella insurance policy in Georgia?
If you’re looking for a firm in Georgia that can help you with umbrella insurance, Peachy Insurance is the place to go. We are one of Allstate’s most successful representatives, and we may provide some of the lowest rates on umbrella insurance coverage.
Whether you’re searching for personal umbrella insurance or business property coverage, we can assist you in locating the best policy to safeguard your assets. Get started with a free quote for umbrella insurance today by contacting us!
What Is Umbrella Insurance?
Umbrella insurance is a type of extra insurance that protects individuals, not their property.
What role does umbrella insurance perform? It provides financial protection in the event of unforeseen circumstances, such as extensive damage to your home and/or bodily injury.
You’re familiar with auto insurance and homeowners insurance, but why would someone need umbrella insurance coverage on top of all that?
Umbrella insurance coverage is intended to safeguard your assets from personal injury claims, as well as those of you and your dependents.
Your umbrella insurance will begin paying out when your liability or vehicle insurance expires.
You could be faced with a claim that exceeds the amount of your liability coverage. This can result in huge economic strain.
If you don’t have the umbrella insurance you require, your assets are at risk.
What Does Umbrella Insurance Cover?
Umbrella insurance covers you in a variety of scenarios.
They include the following:
- Lawsuits such as slander or libel
- Injuries caused by pets
- Damage to other people’s property
- Liability while traveling
How Much Does Umbrella Insurance Cost?
The cost of umbrella insurance coverage is determined by a number of factors, just like any other form of insurance.
Get expert advice from an umbrella insurance agent for your unique circumstances.
However, generally, there are a few factors that play a part.
They include the following:
- Location
- Level of coverage
- Size of family
What Qualifications Do I Need for Umbrella Insurance?
You might be wondering if you qualify for umbrella insurance, as there are several factors that might prevent you from obtaining it.
Of course, you should consult with an expert umbrella insurance agent to go over variables that are specific to you, but there are a few qualifying criteria that may apply.
Let’s examine a few of the requirements for umbrella insurance.
Driving Experience and License Qualifications
If you are listed as a rated operator, you must have three years of driving experience in the United States, territories of the United States, or Canada.
Driving Record
Must have no significant moving-related infractions or license suspensions (past or current) within the last five years.
For $1-$2 Million:
Total household incident count cannot exceed 2 within the past 3 years
Total household incidents cannot exceed the number of cars in the household within the past 3 years
No more than 1 incident for any resident drivers under the age of 21 or over the age of 75 within the past 3 years
For $3-$4 Million:
Total household incident count cannot exceed 1 within the past 3 years
Total household incidents cannot exceed the number of cars in the household within the past 3 years.
Loss History
No personal liability losses greater than $25,000 within the past 5 years
No more than one personal liability lossless than or equal to $25,000 within the past 3 years
No open personal liability claims at the time of application are allowed
Ineligible Risk Characteristics
Any household in which:
- Any auto operator is age 81 or older.
- Applicants do not own an automobile.
- A resident driver who is excluded from auto coverage by a “named driver” exclusion
- Any resident is in a high profile profession and is susceptible to personal injury type claims such as libel and slander. Such professions include but are not limited to:
- Authors, editors, or publishers
- Professional actors, athletes or entertainers;
- Broadcasters or telecasters
- Public lecturers, politicians, political activists;
- Any other person well known to the general public because of their position, occupation or activities
- There is a past or ongoing personal injury claims experience such as libel or slander
- There are more than 10 automobiles
- Any resident has had any automobile, primary or secondary dwelling, or umbrella coverages canceled or non-renewed for underwriting reasons within the past five years
- PUP written in the name of an LLC
- Properties with more than 1 LLC
- Properties with a combination of a Trust and Limited Liability Company.
- The PUP policy has UM Coverage written over $1 Million
- Named Insured owns vehicles garaged outside of the U.S. or Canada
- No more than 1 PUP policy for an individual and/or individual and spouse within a single household
Coverage Limits
Binding Authority:
Maximum binding authority Up to $2,000,000 per policy
Limits above $2,000,000 may be acceptable if all the following are met:
Insured must carry, at a minimum, Underlying Liability Limits 250/500/100 for Auto and $300,000 for Homeowners
Driving records for all drivers in the household and/or listed on the insured’s personal auto policy have been validated
Limits above $4,000,000 are not available
Required Underlying Limits
An umbrella insurance policy is available only as an accommodation to individuals who currently insure a Standard Auto policy with Allstate
PUP effective date should be greater than or equal to the latest effective date of the supporting underlying policies
Autos: Each named insured must have standard personal lines automobile coverage issued by Allstate. All vehicles owned and/or leased by the named insured must be insured with Allstate.
Note: this includes vehicles garaged in multiple states.
All other resident relative drivers and vehicles must be listed and rated on the PUP policy
Vehicles owned by resident relatives are not required to be insured by Allstate
Bodily injury and property damage liability coverage for each owned/leased auto in the household must be insured and maintain at least to the minimum required underlying limits.
Failure of resident relatives to maintain required minimum limits would result in a gap in coverage at the time of loss.
MVRs are required for all licensed resident relatives in the household, whether or not they have auto insurance through Allstate, as they are considered exposures.
Umbrella Insurance FAQs (Frequently Asked Questions)
Why Is Umbrella Insurance Important?
Umbrella insurance is crucial because it provides additional liability coverage, and umbrella insurance is reasonably cheap.
Do I Need Umbrella Insurance?
Umbrella insurance is ideal for anybody who might face a costly lawsuit. Umbrella coverage is also suited to individuals who have a lot of assets to protect.
Do I Need to Have Homeowners or Auto Insurance to Purchase an Umbrella Insurance Policy?
It’s possible. Insurers may sometimes demand that you have at least one of these coverages. However, it all depends on your specific circumstances, so it’s best to get an individualized assessment from an umbrella insurance agent.
How Much Umbrella Insurance Do You Need?
If you have any questions about umbrella insurance, excess liability coverage, or other related topics, contact a professional for help. You might be wondering what level of umbrella insurance or excess liability coverage you require. Unfortunately, there is no one-size-fits-all solution. The need for liability protection is determined by a variety of criteria.
Related Umbrella Insurance Terms
- Personal Umbrella Insurance
- Personal Umbrella Coverage
- Umbrella Insurance Coverage
- Umbrella Policy
- Auto Insurance
- Homeowners Insurance
- Car Accident
- Additional Liability Coverage
- Excess Liability Insurance
- Personal Property