In today's society lawsuits seem to occur over anything. For many years, we have recommended umbrellas for those who own their home and have automobiles, for farmers and businesses. An umbrella is usually not very expensive and provides a large amount of additional coverage.
All umbrellas require specific underlying coverage.
They pay once a loss has occurred which exceeds those underlying limits. Companies are now taking a harder stance and will not pay if an insured fails to carry the required underlying limits. This situation often occurs when a new car, cycle, snowmobile, rental property, home, etc. is purchased, and we are not informed of the change or addition. Additionally, most companies require that they write the underlying coverage in order to provide the umbrella. Fortunately, we have one company that only requires us to write the underlying business within the agency.