A Personal Liability Umbrella Policy is a valuable asset in safeguarding your financial future, providing extra protection beyond the limits of your primary insurance policies. However, to keep this protection effective, you must conduct an annual review, ensuring that it aligns with any changes in your life—like adding new drivers, vehicles, or properties. Here’s why an annual check-up is essential for staying fully covered.
- Coverage for Personal, Not Business, Items
A Personal Liability Umbrella Policy is designed to protect only personal assets, not business-related items. If you have business liabilities, these must be covered under a separate commercial liability umbrella policy. Personal policies will not cover claims related to business activities, so it’s essential to keep your personal and business liability coverages distinct and appropriately managed.
- Ensure All Drivers Are Included
If you’ve added any new drivers to your household, such as teenage or family drivers, they must be listed on your umbrella policy to avoid coverage gaps. Many policies won’t cover claims involving an unlisted driver, potentially leaving you exposed in an accident or liability incident.
- Update Vehicle Information
Whether it’s a new car, RV, ATV, or even a boat, each vehicle should be registered under your umbrella policy. An umbrella policy provides an extra layer of liability coverage but only does so if each vehicle has its own underlying policy with the required minimum coverage limits. Missing even one vehicle could mean there’s no coverage if that vehicle is involved in a costly accident.
- Cover All Properties
For homeowners with rental properties, vacation homes, or recently purchased land, it’s crucial to ensure these properties are listed under your umbrella policy. Both owner-occupied and rental properties should be covered by an underlying property policy that meets your umbrella’s minimum requirements. Unlisted properties won’t be protected, putting significant assets at risk if an incident occurs.
- Include Specialty Items Like Boats, RVs, and ATVs
In addition to standard vehicles and properties, any recreational vehicles like boats, RVs, or ATVs should be accounted for. Like cars, these items need their own primary policies with adequate liability limits. Without this, your umbrella policy won’t cover incidents involving these items, leading to potential financial losses.
- Ensure Minimum Coverage Limits
Umbrella policies often require specific minimum liability limits on underlying policies. If these underlying limits are too low, your umbrella policy may not activate. By conducting an annual review, you and your agent can ensure all your underlying policies meet the required minimums, maximizing your protection.
How to Get Started
We recommend scheduling a yearly call or meeting with your insurance agent to review your umbrella policy and verify that all information is accurate. This annual review helps you stay protected and prepared, providing peace of mind that your umbrella policy is ready to cover what’s most important in your life.
In summary, a simple yearly check can make all the difference in ensuring that you and your family are fully protected by your Personal Liability Umbrella Policy. Don’t leave your coverage to chance—reach out to your agent today to verify that everything is up to date, and make sure your personal and business assets are covered under the appropriate policies. If you would like a quote on an Umbrella policy either Commercial or Personal call our office at 877-898-9333 or for more information go to our umbrella information page.
