Have you ever had an insurance claim where the costs exceeded your existing policy? Maybe you hosted a party in your home and somebody got hurt and now you are liable for their medical bills. Maybe your son or daughter caused a car accident and the repairs and medical bills are greater than what your auto insurance policy covers?

We have many clients who own golf carts, side by sides, ATV’s, boats and other fun recreational toys. Accidents happen. One of our clients owned a golf cart and their 15 year old son was joy riding in it along with a friend. Unfortunately, the fun turned into a disaster when they flipped the golf cart. Both kids had to be taken to the hospital for surgery and treatment. Our clients were thankful for their umbrella insurance policy. The bills in the hospital racked up, the friend needed extensive surgery and had a lengthy hospital stay. Simple golf cart fun for two teens turned out to be a very expensive joy ride.

How can you protect yourself from a financial disaster caused by a simple joy ride?

#1 be sure you have the proper insurance coverage. Ensure you have taken into account your deductible and know your policy limits. If it’s a vehicle you are ensuring make sure you have all the possible drivers in your household added to the policy. If you would need a rental vehicle if your primary vehicle is not operable, make sure you have the rental coverage included in your policy. Meeting with one of our insurance agents at Brockman Insurance Group will ensure you have the proper coverage. An annual review of your policy is also helpful to be sure no changes are needed to the policy and to confirm you are taking advantage of all possible discounts available.

#2 buy an umbrella insurance policy. This type of policy may save you from financial ruin. An umbrella policy kicks in when your primary coverage reaches its limit. In the golf cart accident, our client’s son was liable. They were able to lean on their umbrella policy to help cover medical expenses for the friend. An umbrella policy acts as secondary coverage. If you are found liable for damages that exceed the limits of your primary policy, your umbrella policy will pay the difference up to your limit. An umbrella policy can help pay for legal fees, and medical expenses if you or a family member are found liable.

Do I need to consider an umbrella insurance policy?

We recommend everybody seriously consider purchasing such a policy, particularly if you have kids, entertain a lot, have a high net worth or own a pool, trampoline, or other such exposures. If you have kids and they are driving, an umbrella insurance policy can give you an extra layer of protection in the event they cause an accident and your auto policy limit is reached. Having a pool party in your home opens you up for risk, having kids over and they are on your trampoline opens you up for risk. If you have people over to your home, this also puts you at risk. Homeowners insurance policies have limits (insert link here to homeowners insurance), if you are found liable for an accident or injury, having an umbrella insurance policy may rescue you in the event your existing insurance limit is reached.

Umbrella insurance policies are not outrageously expensive but it can give you peace of mind. Costs can vary depending on your location, your individual risk profile and the amount of coverage you choose.

Does an umbrella insurance policy cover all additional expenses even if I get hurt?

No. If you are injured or you have property damage, an umbrella insurance policy is not going to cover you. An umbrella policy covers injury or damage you cause to others. If you intentionally harm someone or commit a crime, you will not be covered by your umbrella insurance policy. Another point to note, liabilities related to your business or profession are also not covered under an umbrella insurance policy.

When we meet with clients to discuss an umbrella insurance policy one of the points we address is policy limits. How much additional coverage do you foresee possibly needing? 1 million dollars, 2 million dollars or more? We will help you figure this out.

The start of summer is always an important time of year to think about how your insurance needs may be changing. Kids are home on summer vacation and they may be having friends over while you are at work, maybe you have an additional driver in the house, all of these are good reasons to consider adding an umbrella insurance policy.

We invite you to call our Altamonte Springs insurance agency for more information on how to get started with an umbrella insurance policy. We have helped clients in Longwood, Maitland, Orlando, Winter Springs, Lake Mary, Sanford, Ocoee, and Winter Park review their insurance so they can enjoy their family and recreational toys without the burden of “what if…?”

We are available Monday through Friday for a conversation, give us a call at 407-644-9991.

We also offer a whole suite of other insurance products. Curious to learn more about auto insurance? If you are considering motorcycle insurance, we can help you with that too.