Umbrella Insurance

The agents at Gardner and Gardner Insurance Agency of Michigan understand how important protecting your home and financial stability is. Your homeowners’ insurance only goes so far in doing this, and that is where umbrella insurance comes into play.

An umbrella insurance policy provides you additional coverage for liability. This liability extends to every part of your home and the recreational items you install or use away from the house.

Umbrella insurance provides the money for court settlement and attorney costs for a lawsuit stemming from an injury occurring on your property. That means if someone drowns in your swimming pool, your umbrella insurance covers the funeral costs and the cost of the lawsuit if the person’s family sues you. It also covers items like the medical care costs of a person who gets injured by falling down your front steps.

You probably think that sounds a lot like the liability coverage in your homeowners’ policy. It does because your umbrella policy takes over after your home policy’s liability coverage gets exhausted. The home policy only covers you for liability of a relatively small amount, sometimes ten percent of the home’s value, sometimes up to 30 percent of it. You can add coverage to the home policy up to a point. The umbrella policy covers you after you exhaust that.

A typical umbrella policy covers you for up to half a million or a million dollars. That might sound like a lot but consider today’s court settlements and envision what happens if you collide with another person while you both ride ATVs. Add a passenger to each ATV, and you have the medical bills of four people to cover plus the potential to be sued by three individuals. The cost of replacing two ATVs remains minuscule compared to the cost of covering the medical expenses of four people and the lawsuit settlements of three.

Contact Gardner and Gardner Insurance Agency of Michigan for more information on obtaining umbrella insurance for your company. Your umbrella insurance coverage should protect your business from all likely risks.