costco services
The
best umbrella
you’ll buy
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Extra insurance coverage can
save you from getting soaked
By Hana Medina
VEER
YOU CAUSE A multiple-car accident resulting in several injuries that racks up $1 million
in hospital bills. The problem? Your auto
insurance policy will cover a maxiumum of
$300,000 per incident. You are found legally
obligated to cover the remaining $700,000.
Don’t have an extra $700K lying around?
Neither do I.
$
That’s where umbrella insurance can
help. Umbrella insurance may cover the cost
of personal liabilities beyond your current
auto, home and/or condo insurance policies. “It protects people in case a big event
happens. It’s over and above the auto and
home policies, which, to me, symbolizes
the umbrella,” says Penny Rocque, underwriting supervisor at Ameriprise Auto &
Home Insurance.
Since most coverage starts at the $1
million mark, many mistakenly
consider umbrella insurance
to be for the wealthy. But
the truth is, anyone at
any income level could
benefit. “When people see a $1 million
or $2 million policy, they say, ‘I don’t
have a million dollars in assets, so why would I even need $1
million in coverage?’” says Erik Simonson,
casualty claims divisional manager at
Ameriprise Auto & Home Insurance.
Business-related activities are excluded. “You
have to look at the big picture,” he says. If you
get into a liability situation and get sued,
Simonson says, “your wages could be gar-
nished, or they could go after your savings, or
your home equity. ... The goal is to resolve the
situation prior to any litigation, if possible.”
So why don’t more people have it? Rocque
says that, due to human nature, we don’t
think the worst could happen to us. Simonson
adds that because it’s not mandatory like auto
insurance, or home insurance if you take out
a mortgage, people don’t want to pay for
something they don’t think they need.
Despite offering coverage in the millions
of dollars, umbrella insurance is surprisingly
affordable. “A general umbrella policy is
going to be a few hundred dollars, per year,”
Rocque says. The rate varies based on indi-
vidual needs, history and where
the member resides.
Auto incidents are by
far the most common use
of umbrella insurance, says
Simonson. He states that despite cars being
safer than ever before, serious injuries and
fatalities are still a grim reality of driving,
and due to the rising costs of healthcare, the
standard auto insurance policy may not be
sufficient.
Home claims make up a smaller piece of
the pie, but Simonson says many of those
incidents involve falls, dog bites, pool and
trampoline accidents, and even some cases of
social media slander and defamation.
i
In addition to considering umbrella
insurance, Lisa Castaneda, manager of Costco
Services, recommends reviewing your insurance policies every three to five years to stay
informed of what’s covered. “People get married, divorced, buy new cars, homes, do
remodeling or even add something like a
security system, and you don’t know if you’re
getting the right amount of coverage, or the
best rates,” she says.
far the most common use
He explains that umbrella insurance
doesn’t cover the cost of replacing your home
or vehicle (that’s what your current home and
auto insurance are for); it may cover the leftover cost of an at-fault accident or injury. SHUTTERSTOCK.COM
Costco offers a variety of insurance options to fit members’ needs: • Personal health
• Mexico traveler auto insurance
Insurance offerings are not available
in all states. Visit Costco.com and
click on “Services” for details.
Need insurance?
• Dental
• Business health and dental
Understanding your current coverage
will help you assess how much umbrella
insurance you may need. Costco offers
umbrella insurance policies with coverage
from $1 million to $5 million through
Ameriprise at competitive rates. “You do have
to have a Costco–Ameriprise auto insurance
policy to purchase umbrella insurance, and
make sure you have adequate home insurance
liability coverage as well,” says Lisa.
• Business prescription insurance
• Auto, home, umbrella
For more information or to sign up, visit
Costco.com and search “protect” or call
1-888-404-5365. C
Coverage is subject to the provisions, exclusions and
limits of the actual policy.
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