You can’t predict the future, but you can plan for it with umbrella insurance. Just like it sounds, an umbrella liability policy protects you from harsh storms: if you’re liable for someone else’s injury or property damage, you might be faced with a lawsuit that’s beyond your regular insurance policy limits. Umbrella insurance helps Portlanders cover costs that are above the liability limits in standard insurance policies, giving you the peace of mind that comes with knowing you’re protected.
At Peggy Romero and Associates, we’re committed to providing you with a personalized insurance policy that meets your needs while staying within your budget. We will work with you to figure out exactly how much coverage you need, aligning that with your current insurance policies. Don’t let an unforeseen accident or lawsuit exhaust your insurance policy, leaving you scrambling to make up costs. Consider an umbrella insurance policy, and you’ll be ready for whatever comes your way.
Call 503-255-7828 for a quote!
What Is Umbrella Insurance?
Umbrella insurance covers financial needs beyond those of typical insurance policies. If you’re faced with a lawsuit, your regular insurance comes into play, whether that’s home, auto, motorcycle, business, boat, or any other type of liability insurance. However, if the lawsuit exceeds your policy limits, you’ll be faced with costs that you may have no way to cover.
Umbrella liability is a solution to that problem. As soon as your liability coverage on any initial policy runs out, the umbrella policy kicks in. Up to your policy limit (usually $1 – $5 million), you’ll be covered for litigation, legal fees, and/or medical costs associated with the lawsuit. It’s an extra layer of protection: not only are you wearing a raincoat, but you have an umbrella, too.
Umbrella Insurance Benefits
There are numerous situations in which this type of policy can be helpful. The following are a few examples:
- Individuals with especially significant assets-The more you have the more you have to lose
- Financially stable individuals or families looking to protect themselves from disaster
- Businesses with significant assets
- Businesses that sell products or services, raising the risk of facing a lawsuit
** Business umbrella and personal umbrellas are separate & covered accordingly.
An umbrella policy in Portland, Oregon and Washington provides a few key benefits. Since it is no-fault insurance, you’re covered regardless of the situation, which is critical in cases of gross negligence or a fatality. For instance, if you’re responsible for a pedestrian’s death while driving, or if someone visiting suffers severe injury, there could be extensive legal and medical costs that exceed your auto or property policy. Though an umbrella policy can’t protect you from criminal charges, it can ensure that you don’t owe more money than you’re able to pay.
Finally, this type of policy is flexible. A single umbrella policy covers costs regardless of the arena: as long as you’ve met the requirements for liability limits (250/500) on your home, auto, boat, or other insurance, the umbrella policy will help you in the case of exceeding any of those limits; provided they are listed on the policy.
What Does Oregon Umbrella Insurance Cover?
The coverage in your umbrella policy may protect either your personal assets or your business, depending on what type of policy you choose. A personal umbrella policy typically covers the following:
- Bodily injury: Medical costs, loss of income, and funeral expenses
- Personal injury: Legal fees associated with false arrest, invasion of privacy, libel, slander, humiliation, or defamation
- Property damage: Legal fees associated with the physical destruction of someone else’s property
- Landlord liability: Legal fees associated with bodily injury to a tenant or damage of that person’s property
On the other hand, your personal umbrella policy probably won’t cover:
- Your personal property
- Your business
- Criminal acts
- Written or oral contracts
- Damages your expect or intend
Commercial umbrella insurance, on the other hand, covers liability costs for your business. Just like personal umbrella insurance, this type of policy extends your other liability policies. Depending on what your business has in place, it may cover:
- General liability
- Employer’s liability
- Hired and non-owned auto liability
Keep in mind, however, that most commercial umbrella policies will not extend professional liability or errors and omissions liability.
Qualifying For Oregon Umbrella Insurance
Qualifying for umbrella insurance in Portland, Oregon is easy. All you need to do is ensure that your current liability insurance policies meet certain upper limits. You’ll usually need:
- $250,000 of bodily injury and $500,000 per accident coverage on your auto policy
- $300,000 of liability coverage on your homeowner’s policy
Those limits typically allow you to qualify for at least $1 million of coverage under an umbrella policy.
If you’re looking into a commercial umbrella policy, liability limits on your standard policies can vary quite a bit. Often, you’ll need to have at least $1 million in general liability coverage to qualify for an umbrella policy.
It’s easy to adjust your standard policy limits, whether you’re a business or individual, so you don’t need to worry about being left out in the cold. Peggy Romero and Associates will help you align your current insurance with a new umbrella policy to meet all of your needs.
Cost Of Oregon Umbrella Insurance
Umbrella insurance is a good deal in Oregon: the average individual or family pays $175-300 per year for a $1 million dollar policy. $2 million worth of coverage will raise your premium by about $75, while another million will only add $50 more per year. The premiums vary by the number of risks including drivers, vehicles, and incidences.
Commercial umbrella policies cost anywhere from double to triple the price of individual policies, but often fall under $1,000 for small and medium-sized businesses in need of $1 or $2 million worth of coverage. Businesses in need of significant coverage– up to $10 million, for instance– will pay more, but are also protected against almost anything that might befall them.
To lower your annual premium, make sure that you:
- Maintain a good credit score
- Safeguard your property
- Avoid traffic violations
- Minimize risks on your property: do you have a trampoline or a jetski? Consider how you might decrease the dangers posed by your possessions.
Whatever your situation, there’s an umbrella policy for you. It’s one of the least expensive types of insurance, and it can go a long way toward protecting your family and preserving your peace of mind.
Quick Facts – Umbrella Insurance – Portland, OR
When is umbrella insurance usually used?
Car accidents account for 85% of umbrella insurance claims.
If I’m not wealthy, do I need an umbrella policy?
Take a careful tally of your assets. If you have a house, retirement savings, or vehicles and additional property, you may be worth close to $1 million, making you a good candidate for umbrella insurance. Remember, it’s common for lawsuits to reach into the millions, so if you can fit an umbrella insurance policy into your budget, it’s a smart idea.
Does an umbrella policy cover me while I’m on vacation?
Yes. Your umbrella insurance policy follows you wherever you go.
If you would like a quote on umbrella insurance for Oregon or Washington, please call our Portland office at 503-255-7828.