At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
Contact us today!
Executive Order for Policyholder Payments
Umbrella insurance provides an extra layer of protection beyond standard policies such as auto or homeowners insurance. It can cover significant claims exceeding your existing coverage's limits, including legal fees, property damage, and medical costs. However, many wonder if they can obtain umbrella insurance after an accident.
Understanding how umbrella insurance works and its eligibility requirements can help clarify this common question.
Umbrella insurance acts as an additional layer of coverage that kicks in when the limits of your primary insurance policies are reached. For example, if you cause an accident and the damages exceed your auto insurance liability limits, your umbrella policy would help cover the remaining costs.
This extra coverage can protect against a wide range of risks, including:
Lawsuits arising from injuries or property damage
Legal fees for defending claims made against you
Damages from incidents that your primary insurance may not cover
Umbrella policies typically start with coverage limits of $1 million and can go higher, depending on the provider and the policyholder's needs.
Umbrella insurance is designed to cover future claims, not those that have already occurred. In general, insurance policies—including umbrella insurance—do not cover incidents that have already happened before the policy is in place.
For example, if you were involved in a car accident last week and decided to purchase umbrella insurance, your new policy would not cover that accident. The umbrella insurance would only apply to future claims or accidents after buying the policy.
Insurance providers typically require that all primary insurance policies, such as auto or homeowners insurance, be active before you can add umbrella coverage. Additionally, the umbrella policy will only cover new incidents that fall under the terms of the policy.
Also Read: 11 Compelling Reasons to Secure Umbrella Insurance
While you cannot get umbrella insurance for an accident that has already happened, purchasing the policy before any incidents occur offers several benefits. Umbrella insurance is a crucial safety net for individuals who want to protect their assets from large claims or lawsuits. Some key reasons to purchase umbrella insurance ahead of time include:
Higher Protection Limits – Most standard policies have limited liability coverage. Umbrella insurance provides an added cushion in the event of costly claims.
Broader Coverage – Umbrella insurance covers incidents that may not be included in your primary policy, such as defamation or slander claims.
Asset Protection – If you are sued for more than the limits of your primary insurance, umbrella insurance helps protect your savings, property, and other assets.
Getting umbrella insurance before an accident occurs ensures you are adequately protected against future risks and comply with all policy requirements.
Obtaining umbrella insurance is simple once you have the required primary coverage. You must contact your insurance provider to discuss coverage limits and ensure your auto and homeowners insurance meets the minimum requirements. Once those are in place, you can select a policy that fits your needs.
At Club Agency Insurance Brokerage, we help clients secure umbrella insurance for added protection. Contact us today or call us at (866) 784-9785 to explore how it can protect you.
