Umbrella Insurance Coverage

Homeowners insure their homes and cars against damage or theft, but what about boats, ATVs, and jet skis? Meshbesher & Spence’s Andrew Davick has found that even if homeowners carries insurance specific to these items, some things may slip through the cracks. For that reason, Davick and his colleagues have found that umbrella insurance is a great way to protect consumers against a claim. He recently spoke to KROC about the importance of umbrella policies.

What Is Umbrella Insurance?

What is an umbrella policy? An umbrella policy is a general liability policy designed to protect people by insuring those things not normally covered under existing policies.

Why is an umbrella policy necessary? Most homeowners make sure each item is covered under either homeowner’s or auto insurance. You may have a policy on your RV, your boat, and your jet ski and think you’re fully covered. But each of these policies has its limits. For just a small additional fee, you can put an umbrella in place that will kick in for those things your regular insurance doesn’t.

What are examples of some things that an umbrella policy would cover? A person may be handling a jet ski and make a mistake that results in injury or death to someone else. An umbrella policy would cover the costs associated with such an accident.

A Small Price to Pay

Do recreational vehicles like boats and ATVs make someone more in need of an umbrella policy? Everyone can benefit from an umbrella policy, but with open vehicles like boats and motorcycles, when an accident happens, injuries can be pretty serious.

Is an umbrella policy expensive? Not at all. For just a few hundred dollars each year, a policyholder can add millions of dollars of umbrella coverage onto his insurance plan. That’s less than $50 a month for something that brings significant peace of mind.

Are general policies for recreational vehicles like boats expensive? The cost for such a policy depends on the insurance company. Most insurance companies will require each recreational vehicle be insured separately from an insured person’s general homeowner and automobile policies. An umbrella policy just adds a little extra to that.

Buying a Recreational Vehicle

Is a boat owner required to purchase insurance to operate a boat? That isn’t really my area of expertise, but for liability reasons, a boat owner would be safe to have both a general policy and an umbrella policy in place.
What about small rowboats and canoes? I imagine insurance is recommended, but I’m not sure if it’s actually required. An umbrella policy would add at least a million dollars in extra coverage to the general policy, but most insurance companies are likely going to recommend each recreational vehicle be insured.

While someone is setting up insurance on those recreational vehicles, can they also add an umbrella policy? That certainly would be a good time to ask about it.

If you have any questions about umbrella insurance or personal injury-related issues, contact Andrew Davick at Meshbesher & Spence, 507.280.8090.
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