Umbrella Insurance in Idaho
In our years of providing insurance to the people of Hailey, ID, we can't tell you how many times we've had to tell clients that a claim against them has exceeded the limits of their liability coverage. In some cases, it's a driver who ran a stoplight and caused injury to the passengers of the car he t-boned. At other times it's been when a small business owner's employee has caused extensive damages to a customer's property. We also tell them that had they purchased umbrella insurance, they'd be covered since the purpose of umbrella insurance is to take up where the liability portion of their homeowners' or auto insurance policy ends. In other words, an umbrella insurance policy adds the extra cushion of coverage needed when an extraordinary incident causes unforeseen damage.
Understanding Umbrella Insurance
On the other hand, many Idaho residents don't really understand the concept of umbrella insurance. They either think that if they buy an umbrella insurance policy, they won't need any other type of insurance. Another related misunderstanding is that umbrella insurance provides extra auto or property coverage. Umbrella insurance has nothing to do with property or auto damage, but only to the liability portion of the policies.
Since the purpose of umbrella insurance is to supplement the liability coverage provided by your homeowner's or auto insurance, it doesn't take effect until the amount of any judgment or lawsuit filed against you has been exhausted. We repeat it will not cover damage to either your property, vehicle, or that of anyone you've damaged. It only applies to liability — and only when you are required to pay more than your standard policy provides. In other words, it will prevent you from having to mortgage your property or go into debt to cover the amount of the judgment.
The Cost of Umbrella Insurance
Umbrella insurance policies are sold in increments of $1million dollars, but since most people are fortunate to never have the occasion to use them, umbrella insurance is priced cheaper than standard insurance policies. If you think umbrella insurance is a good idea, and we hope you do, we urge you to drop by Harrison Insurance and Financials in Hailey, ID to discuss the amount of coverage best for your situation in Idaho.