Published in Clifton Park Neighbors Magazine – Summer, 2021

By Don Ferlazzo, Agent/Agency Owner

Here’s a scenario that could happen to anyone: You’re driving down Route 9 and you get into a bad car accident. You’re okay, but the people in the other car aren’t. The other driver needs first aid, surgery, physical therapy and even misses work. And worse yet, one of his passengers dies from her injuries.

It’s not fun to think about, but this sort of accident happens every day. And if you’re found at fault, you will be on the hook for their pain, suffering, medical bills, and lost wages (not to mention the damage you did to their car).

So, how will you pay for all of this? Your auto insurance will cover it up to a point, but even if you have better-than-average liability limits you’re still likely to exhaust your policy in a major accident, leaving you with a heavy financial burden that must be paid.

Here’s another scenario: You order something online and have it shipped to your house. The delivery person carries the package up to your front steps, but he accidentally trips over your garden hose and gets injured. Your homeowners or renters policy has some liability insurance built-in, but if the delivery person’s injuries are significant, those limits will also become exhausted and you’ll be on the hook for the rest of what he’s owed.

You’re probably wondering what happens after your insurance runs out. Well, if you own your home, you’ll be forced to sell it. If you have a job, your wages will be garnished. And, if you have savings or investments, you’ll need to cash those out, too. All of this because of one accident. But if you have an umbrella policy when the accident occurs, you’ll be much better protected.

A personal umbrella policy, commonly referred to as a “PUP,” provides extra liability insurance if you are sued and found liable for damages. It kicks in after the liability limit on your home, auto, boat or other insurance policy is exhausted by a claim. In the hypothetical scenarios mentioned above, an umbrella policy could cover the additional money owed in damages, allowing you to stay in your home, keep your assets and maintain your way of life.

So, who needs an umbrella policy? As surprising as it sounds, it’s nearly everyone. If you own a vehicle, you’re responsible for damage and injuries caused by anyone driving it. If you own or even rent your home, you’re responsible for anything that happens there. You could also be found liable outside of your home in a variety of situations (like if you or your kids accidentally hurt somebody while playing recreational sports, for example). In any case, once your underlying insurance policy limits have been reached, an umbrella can help cover the additional money owed by you after a large legal judgement.

Although most people need an umbrella policy, you must first qualify for one. We can help you qualify by guiding you toward appropriate underlying limits and helping you understanding the impact of existing and future claims. We’ll also work with you to bundle your umbrella policy with auto, homeowners and other types of insurance so you get the lowest price.

If you’re ready for the best protection available or simply have questions about whether an umbrella policy is right for you, contact us at 518-978-4044 or by clicking the button below.