What is a Florida personal umbrella policy and what does it cover. Many people have not heard of this policy, others are unsure of what it actually covers.
Some people believe that Florida Personal Umbrella Policies are only for millionaires.
But that is far from the truth. Yes in Florida your home is homesteaded. But your income is NOT! And, they can still put a lien on your primary residence.
The Florida Personal Umbrella Policy works as an umbrella to protect your assets. It covers them up to the policy limits. Usually it is at least $1 Million but can go way above that. It works with your underlying coverage. These coverage’s include your home, auto & boat insurance policies. Personal Umbrella Policies are NOT designed to be stand alone policies.
These underlying policies would cover you to a certain limit and them the personal umbrella would take it from that point. If you had no underlying policy in effect at the time then the limit that you should have had would be the deductible. That could end up being hundreds of thousands of dollars you would need to pay to activate this type of policy.
A little hard to understand! Let me give you an example.
Let’s say that you hit someone with your car and they are air-lifted to intensive care. First the Bodily Injury coverage on your auto policy would pay-out. Then, the Personal Umbrella Policy would kick in and cover the remaining up to the policy limits. If you are missing the required underlying limits. Then you would be required to pay that amount yourself. That is why it is advisable to have your policies in one insurance agency.
People that should have a Personal Umbrella Policy:
- People who have a pool at their home.
- People who own more than one house in their name.
- People with young drivers in their household.
- People with significant assets to protect.
These are the most at risk.
Why would someone want a policy?
Mostly it is to protect you and your assets from any financial liability. Florida is becoming a lawsuit happy State and a personal umbrella policy can help mitigate any liability. If you have a pool at your home and someone drowns in it. Homes in your name that are not protected by the Homestead Exemption. Young drivers that may accidentally cause serious damage or kill someone. Or you have assets that need to be protected. Lawyers can search you and see what you own. Without the proper financial protection, you could financially lose a lot.
Who do you call?
We would be happy to have an insurance review with you. Call us at 754-202-4525 or simply fill-out the form below. Let our knowledge and expertise help you understand your risks and how insurance can help you protect yourself.