As an insurance client, you should always remember that most insurance agencies recognize that Umbrella policies need the maintenance of an underlying/primary schedule at mandated limits. Therefore, it is as much of an importance to you as it is to an insurance agent in Minnesota to pay attention to underlying coverages. As a matter of fact, the obligation to ensure sufficient support prevails is part of the umbrella insurance contract. At Pinnacle Insurance Agency of MN, we make sure to include this in the policy’s “Maintenance of Underlying Coverage” provision.
Included in the provision is the policy’s schedule or declarations consisting of all applicable underlying coverages. Typically, the primary coverages entail:
• Homeowner’s insurance
• Recreational Vehicle
• Personal Automobile
• Miscellaneous Personal Liability
Essentially, an umbrella policy necessitates that a specific limit of insurance be given to each underlying policy. Through the provision, each of these assigned limits must be kept intact for the entire active time of the umbrella coverage.
Although an Umbrella Insurance can come in handy for you as a resident of Minnesota, you should play your part in ensuring compliance with the provision.
You should particularly avoid the following common mistakes in your umbrella policy.
• Making changes to your underlying carrier without informing your umbrella carrier.
• Failing to report a claim within the required period
• Listing an incorrect address or failing to include a new one.
• Leaving out coverages from the umbrella policy
The consequence of failing to comply include bearing total financial loss until the loss amount reaches beyond the level of the original coverage. Therefore, if you have decided to seek additional coverage to protect yourself and your investments, be sure to comply with what is required of you. If you have any questions pertaining underlying policy limits, please contact one of our agents at Pinnacle Insurance Agency of MN. We are always glad to help you in any manner that we can.