The Importance of a Personal Umbrella Policy

Smart Insurance Tips

As a financially successful individual, safeguarding your wealth and assets is paramount. One of the most important aspects of your personal insurance is an umbrella policy. Your primary policies – such as homeowner, auto, or boat — provide the first layer of liability protection. However, if you’re sued for a major accident involving your car or home, the liability limits of those policies could be inadequate. This is where your personal umbrella policy, also known as excess liability, comes into play.

A personal umbrella policy provides a second layer of coverage that protects you from lawsuits due to bodily injury or property damage you may have caused to another party. Without this coverage, your personal assets could be at risk. 

Personal liability umbrella insurance is a critical component of a comprehensive risk management strategy. For financially successful families, it can provide peace of mind. 


Here are a few important tips:

  1. Umbrella premiums are surprisingly affordable for high limits of coverage.
  2. The more assets you acquire, the greater your risk. Coverage limits can be purchased from a minimum of $1M to $50M+.
  3. Home construction and renting your home to others are just a couple of factors that increase your liability risk.
  4. Your insurance broker can customize a policy with the right level of coverage, based on factors like personal net worth, lifestyle and risk tolerance.
  5. Legal defense costs are typically included, outside of the coverage limits purchased on your policy.
  6. Most personal umbrella policies provide worldwide coverage

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com

How Do Natural Disasters Affect Insurance Rates?

Smart Insurance Tips

The increase in frequency and severity of natural disasters in recent years is having a broad impact on the insurance market. Although wildfires in California and Colorado and hurricanes in the Southeast are regional, they affect the overall pricing of insurance across the country. Insurance companies purchase reinsurance from other insurers to protect themselves from catastrophic events. The heightened risk of severe weather like flood, hurricanes and wildfire causes reinsurance rates to skyrocket, which ultimately results in higher homeowner and flood insurance rates for the consumer.


Here are a few important tips to manage your insurance premiums

  1. Use insurance policies for covering large claims only. If possible, try to pay for smaller repairs out-of-pocket. Frequent claims, even smaller ones, can lead to a premium increase or policy cancellation. 
  2. Given current market conditions, expect your homeowner rates to go up. Your broker you may find ways to manage your premium increase. Consider taking higher deductibles and use the savings to pay for small losses.
  3. Adding protective devices to your home will mitigate loss and reduce your insurance premiums. For example, adding an automatic water shut-off valve to your water main will prevent a large water damage loss and save 5% or more on your homeowner rates.
  4. Review your policies with your insurance broker so you understand your coverage and deductibles. Look for areas where you may be able to reduce your costs while maintaining comprehensive coverage.

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com