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Should You Buy an Umbrella Insurance Policy for Osage Beach?

By January 19, 2022Auto Insurance

At McGrath Insurance Group, we believe that an umbrella policy in Osage Beach is good for just about everyone living here. Still, we don’t expect you to take our word for it that easily. As you’re researching the best insurance policies for your household, it’s important to understand why an umbrella policy is so attractive and what it does differently to protect you and your family.

What is an Umbrella Policy?

Umbrella policies get their name because of how they’re structured. Pretend the umbrella you’re holding over your head is additional liability insurance coverage. The rain that could come down is higher-than-anticipated liability costs following accidents, claims, and losses. With that umbrella protecting you, you’re far less likely to get unexpectedly caught in the rain of high out-of-pocket costs that exceed your personal policy’s liability limits. In other words, it’s broader coverage that fills gaps in your primary coverage.

On the surface, they sound good. Still, many people question whether they need this kind of policy in addition to their regular coverages. Here’s why you might want to consider adding an umbrella policy for your family.

Additional Protection

Umbrella policies typically put an additional $1 million or higher liability policy over your underlying policies from car and boat, to home and more. Having that policy gives you an added layer of protection if your underlying policy limits are exhausted.

Damages from accidents add up quickly. While you might feel like you have a lot of coverage on your policy, you might be surprised at how fast you run through those dollar amounts. For large claims that exhaust your underlying policy limits, your umbrella policy kicks in to cover the extra costs, saving you potentially hundreds of thousands of dollars.

Here’s an example of what this additional protection could look like. Let’s say Kevin causes an auto accident resulting in a $2 million judgment against him. His Personal Auto Policy has a $500,000 bodily injury limit per accident. Fortunately, Kevin also has a $3 million umbrella policy.

His personal auto policy insurer would pay up to the policy limits of $500,000. It would also pay for the legal fees since it covers all defense costs until a settlement is reached or a judgment is rendered.

The umbrella policy insurer would then kick in to pay the remaining $1.5 million since the underlying limits of $500,000 were exhausted. Because Kevin had a Personal Umbrella insurance policy, he does not have to pay $1.5 million out-of-pocket to satisfy the judgment.

In Your Defense

Umbrella policies don’t just cover monetary costs. They also cover your defense. This is important if a claim is ever brought against you. No matter how careful you might be, you never know when claims can happen, leaving you exposed to hours of time, mental strain, and overwhelmed just from dealing with outside insurance companies.

With an umbrella policy, your claim will be brought on and moved over to the insurance company. You’ll be able to rest easier knowing that you have someone on your side and in your defense.

Mind Several Gaps

Umbrella policies stack on top of multiple personal insurance policies including homeowners, auto, and dwelling policies. If there’s a shortage in one of your primary or underlying policies’ liability limits, your umbrella policy can fill those gaps, offering you more coverage.

It’s important to note that there are certain gaps an umbrella policy will not fill. Those include libel, slander, false arrest, invasion of privacy, and others. If you’re unsure about what’s covered and what you need, it’s important to talk to your insurance agent.

Get a Quote for an Umbrella Policy in Osage Beach

From stacking the insurance in your favor to filling in the gaps in your insurance, umbrella policies are highly valuable to have for your household. If you’re interested in getting an umbrella policy for your family, request a proposal for an umbrella policy from us at McGrath Insurance Group. We represent a variety of carriers and can help you find the best option for your unique needs.