Umbrella Policy

It's Not Raining. 

Why do I need an Umbrella?

Webster describes an umbrella as "a protecting force or influence." That describes a Personal Umbrella Policy (PUP) also.  It protects your assets when your home or auto policy coverage has been exhausted. 
Fun Fact: The first Umbrella policies were sold in 1949, so they have been around awhile! 

When do you need a PUP?

Insurance covers you in the case of a sudden and accidental loss. Most people do not plan to have an accident or cause damage to someone else's property. But it does happen. In Texas, all drivers are required to have Liability insurance. But when you have an accident that is more expensive than the coverage you have, what are your options? Without an umbrella, you will have to pay the difference out of your own pocket. 

What extras will a PUP cover?

Umbrella policies will cover a multitude of extras. It can cover a lawsuit that is a direct result of an accident on your property. It can cover damage you cause to someone else's property, such a car accident. It can cover Medical expenses for someone who was injured at your home. It can also cover defamation of character judgments, which can be very helpful in today's social media world. 

What will a PUP not cover?

Umbrella policies will  cover Liability (when you cause loss or harm for another person). They will not cover your own property or your business. There are Commercial Umbrella policies that would cover your business liability. They will also not cover any intentional acts. Insurance generally covers sudden or accidental loss; NOT intentional acts that result in loss. So if you intentionally run into some one's house, you will not be covered- by any insurance actually.

What do I need to know?

Carriers require specific liability limits on your home and auto before they will issue you a personal umbrella. You will need to have $500,000 in Home Liability. You will need to have $250,000/$500,000/$250,000 in Auto Liability. Or some carriers will offer a lower rate if you have $500,000/$500,000/$500,000 for your liability limits. Check with your agent fr your current limits and what it will cost to increase them if you need to. Liability isn't usually expensive to increase. 

What does a PUP cost?

Personal Umbrella policies vary in pricing depending on what you own, who drives on your policy and your claims history. If you have a home, two autos and no young drivers or claims, you will be paying around $350 annually. The price will increase if you have young drivers (under 25) or older drivers (over 75). It will also increase if you own rental properties. You will also have to carry a certain amount of Liability coverage (usually $300,000) on your rental properties. If you have a checkered claims history or motor vehicles violations, the premium will be higher as well. 

Call your agent to see if you are a good candidate for a Personal Umbrella Policy. If they cannot answer your questions, call us!

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683  

Explaining Home Insurance

Make it Simple-Homeowners Insurance

   Have you tried to read your insurance policy and just given up? It can be very confusing! This is our second post in our series, Make it Simple. Our goal is to help you understand your insurance policy.

    Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. For a home insurance policy, this page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period. 

There are 2 types of coverage on your Home insurance policy: Coverage that protects you and coverage that protects the other party .

Coverage that protects you:

 Dwelling Value:  The dwelling value is set at or above the estimated replacement cost of the home, which includes the cost to haul away debris, and the contractor’s overhead & profits. This coverage can be written at Actual Cash Value (the value to rebuild the home minus depreciation based on the age of the home) or at Replacement Cost (value to rebuild the home at today’s quality and price). I would stay away from ACV policies.

Other Structures:  covers buildings SEPARATE from the house—pool, fence, storage shed, detached garage, etc. This usually defaults at 10% dwelling value. Marny carriers will let you increase this amount.

Personal Property:  protects the contents of the home. This can also be written at ACV or Replacement cost coverage. If you have a total loss to the home, the carrier will write you a check for the total personal property coverage amount, regardless of whether you have RC or ACV coverage. If you have a partial loss such as a small fire or theft, they will only give you the coverage you have paid for; meaning if you have ACV coverage, your 8 year old TV will only be covered for the value of an 8 year old TV. If you have Replacement Cost, your coverage will cover the cost of a new TV.

Loss of Use:  provides reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your home is uninhabitable. Some carriers will let you increaes the amount of this coverage. Other carriers allow a fixed percentage of the dwelling value amount.

Deductibles:  is the amount you pay out of pocket when you file a claim for a covered loss. There are 2 main types of deductibles;

            Wind/Hail Deductible: This covers your home in the case of high winds or hail, usually seen during severe storms. We frequently see these storms in Texas!

            All Other Perils Deductible: This covers your home for the remaining perils listed in your policy, such as fire or theft. 

* Remember- home insurance policies do not cover floods. You will have to buy a separate policy for flood insurance. (We will have a post on flood insurance out soon)

Coverage that protects the other party 

Personal Liability: Covers you if someone is injured on your property due to your negligence.  It may help pay for their injuries and any legal costs.

Medical Payments: May provide reasonable and necessary medical expenses to a guest on your property injured in an accident.

There are many factors in Home insurance, but they don't have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

There are three ways to request a quote for your insurance needs:
 * Visit our website
* Email us
* Call Brockman Premier Insurance at 877-987-8683