Key Considerations When Shopping for Umbrella Insurance

Umbrella insurance can provide peace of mind and may also mitigate major risks. Insurance plans are rather complex, so it’s crucial to study the terms. If you find gaps in coverage, you may be able to get an umbrella insurance plan that will mend those gaps. Contact R&R Insurance Group LLC, serving Quakertown, PA, to explore umbrella insurance options.

Different insurance plans will cover different things. One insurance plan might cover damage caused by flooding, while another may not cover flood damage. Likewise, many insurance plans have limits. One plan might cover up to $50,000 in damages, while another might set the limit at $100,000.

When shopping for insurance plans, it’s crucial to consider various factors so that you can make the right choice.

Let’s take a look at the factors worth considering:

What is the Local Environment Like?

Umbrella insurance plans can mitigate risks, but it’s important to understand what the risks are in the first place. Insurance prices may vary from one area to another. If someone lives in a neighborhood with high crime rates, their car may be more likely to end up stolen or otherwise targeted by criminals.

What Properties Will Be Covered?

Generally speaking, the more valuable something is, the higher the premiums that you’ll have to pay (assuming other factors remain equal). Further, valuable assets can increase risks simply because the owner has more of their wealth tied up in such properties.

What Are the Payment Limits?

If someone owns an asset worth $100,000, but their insurance for said asset sets a limit of $50,000, the property owners may not be able to recover their full losses should the property be damaged, stolen, or destroyed (among other things). It’s crucial to consider how valuable the asset is when selecting policies.

Reach Out To Us

Get in touch with R&R Insurance Group LLC in Quakertown, PA to learn more.

Is Umbrella Insurance Worth It for Small Businesses?

R&R Insurance Group LLC in Quakertown, PA can help you figure out if umbrella insurance is right for your small business. As a business owner, it is important to think about every possibility that could happen and how you would be protected financially. No one wants to think about the "what ifs" in life, but they happen. That is why insurance exists — to protect us from the what-ifs. 

What Is Umbrella Insurance?

Umbrella insurance is an extra layer of protection above the liability limits on your home, auto, or watercraft policy. It also gives you broader coverage than your basic policy and can help fill in gaps in other insurance coverage. So, if you are sued or held liable for damages or injuries, your umbrella policy would provide coverage over and above the limits of your other insurance policy. 

For example: let’s say you are driving your car and causing an accident that injures another driver. The other driver sues you and is awarded $75,000 in damages. Your auto liability limit is $50,000. This means you are responsible for paying $25,000 out of pocket — unless you have umbrella insurance. Then your umbrella policy would cover the additional $25,000.

Do I Need Umbrella Insurance for a Small Business?

The answer to this question is maybe. It depends on the type of business you have, the amount of risk involved, and your financial situation.

For example, let’s say you own a small retail store. You carry liability insurance, but it has a low limit of $100,000. If someone is injured in your store and sues you, your policy would not cover the full amount of damage. In this case, umbrella insurance would be a good idea.

The bottom line is that small businesses lack the financial resources to pay for large settlements or judgments. This is where umbrella insurance can help. It can provide the extra coverage you need to protect your business in the event of a lawsuit.

So, no matter the size of your business, think about your liability risks and how you would financially handle them if they occurred.

Get Umbrella Insurance for Your Small Business Today

If you are not sure whether or not umbrella insurance is right for you, the best thing to do is speak with an R&R Insurance Group LLC agent who can assess your needs and provide a quote. We have helped many small businesses in Quakertown, PA with their insurance needs and would be happy to help you too. Give us a call today.

Scenarios Where Umbrella Insurance Helps You

Sensible folks like us in Quakertown, PA don’t want to waste money. Before you get into a contract where you’re handing over cash, you want to know exactly what you’re getting and how it’ll benefit you. To help you determine whether or not an umbrella insurance policy is sensible for you, R&R Insurance Group LLC has 3 example scenarios where one would be a wise purchase.

1. You Cause a Serious Auto Accident

Even with the maximum liability limit on an auto insurance policy, a significant accident caused by you or a dependent can result in you being liable for hundreds of thousands of dollars or more. Umbrella insurance’s higher limits work after your auto insurance, raising your maximum protection to an amount that can handle all but the most severe jury rewards.

2. You Are Involved in a Hunting Accident

If you go on a hunting trip with your friends and cause an accident ranging from causing property damage to injuring a fellow hunter, your typical coverage like homeowners’ insurance and auto insurance won’t apply. Umbrella insurance will charge a small fee that works like a deductible in cases where your other insurance doesn’t apply, then it will help you repay any damages up to the limit.

3. You Lose a Long Legal Battle

You may have to pay for both sides’ attorney fees after a protracted legal battle. At hundreds of dollars an hour, those fees quickly escalate into the thousands. Your other insurance may not provide any assistance, either. Umbrella insurance can pick up the fees, so you don’t have to weigh the risk of a lost lawsuit against pursuing justice.

Umbrella Insurance Can Do Even More

We at R&R Insurance Group LLC hope these three sample scenarios help Quakertown, PA residents and other consumers get an idea of what benefits umbrella insurance brings, but there are plenty more to discuss. To find out your options and the specifics of each policy’s coverage, contact us or your agent today.