Personal Umbrella Policy in New Hampshire

Accidents happen every day.  These accidents can lead to lawsuits and expensive defense costs in today's litigious society. Though many New Hampshire residents have some liability protection through their homeowner's or car insurance, some accidents exceed those policy limits. This is why insurance and financial planners recommend personal umbrella insurance for extra protection.

What is a personal umbrella policy?

Personal insurance policies providing liability coverage cap the maximum amount the policy will pay. The limit can range from $25,000 to $500,000, depending on what was purchased. Though this may seem enough to cover many situations, it may not be due to high payouts for damages sustained as well as loss of income and pain and suffering.

Liability coverage is typically included in home, car, boat, recreational vehicle policies, and other such personal insurance. However, should New Hampshire residents want more liability protection than these policies provide, they should consider a personal umbrella policy.

Personal umbrella policies also have limits, but as they can go over an underlying policy, the liability limit is typically more than a million dollars.

Who in New Hampshire should consider personal umbrella insurance?

If you have assets exceeding your coverage limit, you risk paying the difference between your coverage and settlement amount, plus legal defense. Ouch! Personal umbrella insurance can fill this gap.

Many residents of New Hampshire could benefit from additional liability coverage that personal umbrella insurance provides.

Of course, anyone can be sued, but the examples below illustrate how different people might benefit from having personal umbrella coverage:

• Anyone with assets greater than underlying policy limits, including regular income, retirement, and other assets.
• Those with high-profile professions can be a target for an opportunistic lawsuit.
• Landlords could be sued if tenants or their guests are injured while on their rented property.
• Dog owners would be held financially responsible for injuries caused by their dog.
• Families with young or new drivers or young children in the household
• Boat owners could be held financially responsible for accidents occurring on the water.
• Anyone who owns and tows a camper/RV given a minor car accident can cause significant damage.

These claims can be expensive to defend against, and tragedies can be especially devastating if there’s insufficient protection. Umbrella coverage may help cover these sorts of lawsuits (provided a policy’s terms cover the claims).

An agent who specializes in umbrella insurance can give other examples of when a personal umbrella policy might provide supplemental protection. They can then discuss the insurance with residents to determine whether purchasing a policy makes sense.

How much does it cost for a personal umbrella in NH?

Typically, umbrella policies can extend your liability limit to $1 million, but you can purchase more depending on your assets and risk. As your umbrella will only take effect once your other policy's limits have been exhausted, your premium costs are often relatively low. Though rates vary by company, a typical $1 million umbrella for someone with two drivers, two cars, and a home would be approximately $250. But, again, call your insurance professional for a more precise quote.

Do personal umbrella policies provide property coverage?

Personal umbrella policies usually limit their coverages to liability risks, where a policyholder could be sued for causing injury or property damage to another party. These policies don’t offer any coverage for a policyholder's own physical property.

What are primary insurance policies?

Primary insurance policies generally are the first line of defense against covered claims. Umbrella insurance usually builds on these policies' protections. Primary policies are sometimes referred to as "underlying policies" because they offer coverage that underlies umbrella policies.  An example of a primary policy would be a personal auto policy, a homeowner policy, etc.

Many personal umbrella policies have underlying coverage requirements that primary insurance policies must meet. These underlying requirements ensure that a minimum amount of coverage is available before the umbrella policy would pay on a claim.

A knowledgeable insurance agent can check an umbrella policy's underlying coverage requirements and make sure suitable primary insurance policies meet them.

Can anyone get a NH umbrella policy?

Given the potential of a large payout in an umbrella claim, not everyone can get umbrella insurance.  Insurance companies look closely at loss history, driving records, professions, and other factors when determining eligibility.  If a particular company declines one's umbrella coverage, you may be eligible for another.  Therefore, working with a knowledgeable agent, such as HPM Insurance, can be helpful as they have access to multiple markets.

Where can New Hampshire residents get a quote for a personal umbrella policy?

If you’d like assistance getting a quote on a personal umbrella policy, contact the independent insurance agents at HPM Insurance. Our New Hampshire agents can help find a policy suited for your needs.