What does an Umbrella Policy Do

							Why you need an                                                                                                       What does an
   UMBRELLA                                                                                                            Umbrella Policy
            policy...
   D o   y o u h a v e e n o u g h                                                                                         Do?
            l i a b i l i t y ?
                                                                                                                      An umbrella policy is insurance that
If there were a vehicle accident for which                                                                            provides additional coverage once the
you were at fault, and a child was                                                                                    liability limits on your homeowner's or auto
permanently disabled, would your auto                                                                                 insurance policy are exhausted.
liability policy offer enough coverage to pay
for the skilled care that child would need for                                                                        Umbrella policies are typically sold with
                                                                                                                      limits of $1 million to $5 million. In the
years to come? We’d all like to believe that                                              Yearly
such catastrophic losses would only happen                   Limit                                                    example to the left, if you had a $1
                                                                                        Premium*                      million umbrella policy, once you satisfied
to other people. But there is nothing we can
do to eliminate these types of risks in our                                                                           the deductible, the auto insurer would pay
own lives.                                        $ 1 Million                             $ 149.00                    the auto policy limit of $300,000, and your
                                                                                                                      umbrella would pay the other $700,000 of
Consider what would happen if there were a
                                                  $ 2 Million                             $ 268.00                    the $1 million dollar settlement. Your
settlement of $1 million as a result of an                                                                            assets would not be at risk.
                                                  $ 3 Million                             $358.00
auto accident for which you are liable. Let’s
say you have insurance limits of $300,000         $ 5 Million                             $ 469.00
per accident. Now what happens? Your             * Yearly Premium’s are based on a review of your current insurance
auto insurer would pay its $300,000. Then        policies. Terms and conditions may apply. Please call an Account     A personal umbrella policy is a smart
everything you own would be at risk for          Manager at Brown & Brown for further information.
                                                                                                                      investment. The best things in your life
seizure to pay off the additional $700,000,                                                                           deserve the best protection.
except for assets that may be protected in
some states, such as your home.                                                                                       For more information about a personal
                                                                                                                      umbrella policy, please contact an
Further more, your earnings could be                                                                                  Account Manager at Brown & Brown
garnished for years to come. With stakes                                                                              Insurance at 716-995-5620.
this high, and considering the relatively
modest cost of additional liability
coverage, it just makes sense for people to
purchase the added protection of an                           www.bbbuffalo.com
umbrella policy.
     How much coverage                                   Do I really need an
        do you need?                                      Umbrella Policy?

People often believe that the amount of           One myth about an umbrella policy is that
umbrella coverage needed should be the            they are only needed by the wealthy.
total value of their assets, but that might not   These days the cumulative value of
be adequate.                                      homes, vacation homes, rental property,
If, for example, you have assets of $1            cars, boats, savings, investments, and so
million and you buy $1 million of coverage,       on, owned by many people, who consider
what happens if you are found liable for a $2     themselves wealthy, make them
million judgment? Insurance would pay the         vulnerable to liability beyond their auto or
first million, plus the limit of the underlying   homeowner’s insurance limits. A good
homeowner's or auto policy, but you could         question to ask yourself is whether you
lose a significant amount of your assets for
the second million.
                                                  have assets that you don’t want to put at
                                                  risk in the event of a catastrophic liability.                             Put a
                                                                                                                        Personal
If you were liable for $3 million, you could
lose not only a significant portion of your       Lifestyle also plays a role in determining
assets, but you would still owe $1 million.       liability risk. Do you have a swimming
Both your future income along with any            pool, trampoline, swing set or other
inheritance you might receive would be
jeopardized. Just how much coverage you
need depends on all your risk factors, your
                                                  recreational equipment that can lead to
                                                  accidents? Are there frequent quests on
                                                  your property? Do you engage in sports
                                                                                                                        Umbrella
own financial planning, and your tolerance
for risk.
                                                  that could injure others? Do you live in a
                                                  wealthy town where you might be more of                                    Policy
                                                  Coverage statements are abbreviated. Consult policy for
                                                  definitions and limitations. The terms of this brochure do not
                                                                                                                         to work for you!
                                                  represent contract terms. This policy is subject to company
                                                  underwriting practices. This policy requires minimum
                                                  underlying limits of liability to prevent gaps in coverage and
         Who is Covered?                          some activities and pursuits may be excluded altogether.
                                                  There may be deductibles and exclusions. Ask your
                                                  Customer Service representative to review your current
                                                  policies.
•   You and your relatives who live with you
•   Anyone under the age of 21 who is in
    your care or in the care of relatives who
                                                          Brown & Brown Insurance
                                                                                                                     Your personal assets &
•
    live with you
    Anyone driving your car who is covered
                                                       200 John James Audubon Parkway                               future earnings deserve
                                                           Amherst, New York 14228
    under one of your basic policies
                                                                 716-995-5620                                      an extra layer of protection
•   Your owned animals for their actions
                                                              www.bbbuffalo.com