Questions to Ask Your Agent about Umbrella Insurance
When you meet with an umbrella insurance agent, he or she will ask you many questions about your financial history and plans. But you also need some answers about the company and how it handles clients. Make a list of questions before your appointment, so you can make the most informed decision possible.
Here are some questions you should ask your umbrella insurance agent:
- How long has your insurance company been in operation? New start-up companies may not have the resources and experience necessary for handling the complexities of an umbrella insurance claim. Don't discount all new insurance companies, but look for other signs of stability as well.
- How many clients does it serve with umbrella insurance? The insurance company's client base is a good indication of its performance and reputation.
- In the event of a claim, will the umbrella insurance company work with the traditional insurance company toward the settlement? This is extremely important. Sometimes red tape and lack of communication between insurance companies can cause a settlement to go unresolved for years. You want an umbrella company that will stay in communication with your primary insurance company to effectively resolve the claim.
- In the event of a claim, will the company pay in full, or will it hold back funds for any reason? When you are trying to resolve a lawsuit, you want an insurance company that will take care of it without holding back funds without a good reason.
- What are the exceptions to umbrella coverage? Not every umbrella insurance company covers the same set of exceptions. Be sure that you ask about this before signing on the dotted line.
