What is an Umbrella policy? – Johnstown PA

Hello, this is Barry from Maluchnik Insurance and Financial Services. I wanted to talk to you for a minute or two today about a very important bit of very underused coverage in the insurance industry. This is what’s called a personal umbrella policy. We all know umbrellas are something that goes over top of us when we’re outside to protect us from the sun, from the snow, the sleet, the rain. So it protects anybody underneath that umbrella. That’s similar to what a personal umbrella policy does for you.
Everybody has their auto insurance, home insurance, boat, motorcycle, RV, snowmobiles. Has individual policies on each of those to protect them against bodily injury or property damage that they might cause and be liable for. So normally people carry as high as usually it’s $300,000 or less liability on their personal policies. So what would happen if, let’s say you had this million dollar umbrella policy and you were involved in a serious auto accident where somebody was hurt seriously, or maybe even killed. And you were held liable. Let’s say the judgment against you is $1.1 million, and you have the standard pretty common 300,000 liability protection on your auto policy.
Well, what happens then your auto insurer pays that $300,000 to the plaintiff, and then you’re on your own after that because they took care of what their responsibility was. They paid their limit. So if you didn’t have the umbrella, you would be on the hook for the other $800,000. Well, what would happen if you had that million dollar umbrella after the auto had paid its limit, that it would then go to the umbrella policy and that would pick up the other $800,000 out of your million dollar umbrella and you would be done with the claim.
So it’s really a very important coverage to protect your assets. We’ve all built up assets through the years, our 401ks, our IRAs, our homes, our toys, savings accounts, but that’s what an umbrella is there for. It’s there to protect all those things that you’ve worked so hard for in your life. And as I said earlier, it’s a very inexpensive premium to pay for the amount of protection you get.
If you have any questions, I’d like you to visit our new website, maluchnikinsurance.com, or you can contact us through there or get in touch with us directly for free, no obligation quote. Hey, thanks for your time today. Have a great day and we’ll talk to you later. Thanks. Bye.

Call Maluchnik Insurance and Financial Services in Johnstown PA at (814) 255-7145


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