Purchasing Umbrella Insurance
Evaluate your assets, know your net worth.
Consider potential liabilities include defamation, invasion of privacy, malicious prosecution, assault and battery, wrongful eviction (of a tenant), wrongful termination (of a household employee), and a variety of intentional acts.
Include any liability that might arise from your service on the board of civic, charitable, or religious organization. (Remember, most umbrella policies exclude coverage for claims if they occur in the context of a business transaction.)
Make a list of the questions you come up with from thinking about all of this. Your checklist should include:
- Are all assets covered?
- Does the Umbrella cover occurrences that are not covered by the primary policies? If so, what kinds of things?
- What is the Umbrella’s duty to defend and how is it triggered?
- Are the Umbrella coverage limits reduced by the amount of money that the insurer spends defending the litigation?
- Who are the individuals covered under the Umbrella, and are family members not currently living in the family home (such as sons and daughters away at school) covered?
Then sit down for a heart to heart with an Umbrella Insurance agent.
Next: Meeting With an Agent