Already insure your clients home and auto policies? What if an extreme loss occurs? Are they adequately protected?
A personal umbrella policy from Frankenmuth Insurance offers an extra layer of liability protection for your insured’s assets if a serious auto accident or property claim should occur. Otherwise, your insureds could be liable for more than their current policy coverage limits.
How does personal umbrella coverage work?
Consider this scenario:
· The insured’s home insurance provides $500,000 of liability coverage
· The insured’s friend is severely injured while driving a covered ATV on the residence premises and the insured is sued for $1.5 million
· The home policy would pay up to $500,000 for a covered accident but the insured would be responsible for the remaining $1 million
· If the insured had a $2 million umbrella policy, they wouldn’t be responsible to pay the remaining $1 million out of pocket
It is also important to understand an umbrella policy covers several circumstances that have nothing to do with cars or homes. Things such as personal injury protection which include false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction
FMI Personal Umbrella requirements:
· Primary personal liability & recreational vehicle liability must be written with Frankenmuth Insurance and have a minimum liability limits of 250/500/100 or 300/300/100 or 300 CSL
· Dwelling Fire landlord liability must be controlled by FMI with a minimum liability limit of 300 CSL
· All other underlying policies not with Frankenmuth, must be rated AM Best A- or better and have a minimum liability limit of 500 CSL
· PUL Limits are available in increments of $1,000,000 up to $5,000,000
· No policy, new or renewal, may be bound by the agent without authorization from Underwriting
· Applications can be submitted via IBIS either stand alone or packaged with the auto or home
Should you have any questions, comments, or concerns, please contact your Personal Lines Underwriter.
