Category: Umbrella Insurance

When shopping for an insurance plan, it’s always a good idea to explore the various options that are available. At Maschoff Insurance, we are providing umbrella insurance to the people of Ankeny, IA. But how do you determine if you need umbrella insurance rather than other insurance plans?

What is Umbrella Insurance?

Umbrella insurance is a type of liability insurance that extends beyond your current policy’s coverage. In liability insurance, the insured is covered for situations involving lawsuits and legal fees. If a client is being sued for personal injury or property damage, they can rely on liability coverage for financial protection. However, some situations surpass the limit of liability coverage. Most insurance policies will only pay up to a specific limit. Umbrella insurance is a plan that provides additional liability payments, offering the customer peace of mind, knowing they won’t have to worry about expensive legal issues.

Is Umbrella Insurance Preferable to Other Insurance?

The answer to this question depends on your needs. An umbrella insurance policy could be extremely beneficial if you find yourself in a situation where a lawsuit could turn outrageously expensive. Umbrella insurance is ideal for people with significant wealth or those who offer hazardous products or services. Typically, umbrella insurance is as versatile as other types of insurance coverage.

Getting Umbrella Insurance in Ankeny, IA

If you’re interested in learning more about our umbrella insurance plan, please get in touch with Maschoff Insurance at 515-964-3195. Our agency’s team is highly experienced in designing customized plans for our clients.

If you bought an Ankeny, IA duplex with the intent of renting it out, then you’ve established a business. Businesses are liable for damages and injuries, so they need the proper insurance. Umbrella policies represent extra coverage when a court-ordered award is granted. Are these insurance premiums a tax write-off?

Yes. These are considered business expenses. An umbrella policy acts as a supplement to a business’ regular insurance and so is tax-deductible. That doesn’t go for a percentage of the premiums, it goes for the entire thing. Maschoff Insurance wants you to know these things about umbrella insurance as a tax write-off.

When This Isn’t The Case

A personal umbrella policy can’t be used to benefit a business; you’d have to purchase a commercial umbrella policy. This isn’t the case when you own multiple properties that you rent out. 

It’s a gray area requiring professionals well-versed in commercial tax deductions, to wit: technically, the properties constitute a business, but under some circumstances, you can include them on a personal umbrella policy. Here’s a pro tip: Get an accountant who understands where the line between personal and business tax write-offs is located.

Business umbrella policies are often written off due to their “necessary” nature, which is self-explanatory. If this policy is commercial, it could be entirely deductible. If only half the umbrella covers Ankeny, IA rental properties, then only half the premiums can be deducted.

Some landlords form an LLC when they own multiple properties. In the case of an accident, the insurance sometimes isn’t enough. The landlord with an umbrella policy would be covered.

Schedule A Consultation Today!

There are a few areas of umbrella insurance and tax write-offs that aren’t quite as black-and-white as we would wish. When you have questions about these and other umbrella insurance areas, call Maschoff Insurance or come into the office to learn more about it.

When you purchase a home or business insurance from Maschoff Insurance, you may think you’ve covered all of your needs. As you age though, you may need to add umbrella insurance to your insurance package.

We say “add to” because umbrella insurance provides secondary coverage. That means you need to already own one of the qualifying primary insurance policies before you can purchase it.

How Does Umbrella Insurance Help You?

You need to protect yourself from liability in relation to your home and business in Ankeny, IA. Your home policy offers a limited amount of general liability coverage for your personal needs. If you own a business, your general liability commercial policy covers a limited amount of liability.

An umbrella policy offers additional liability coverage. It’s the only kind of coverage provided in the policy.

As you age, you become more involved in the community in which you live. You might coach Little League or Pop Warner. Perhaps you serve on the board of directors for a non-profit or you regularly host fundraisers at your home. All of these events or activities increase your personal liability.

As you age, your business grows. You gain customers and your annual revenue increases. This boon deserves protection. More customers mean more people in and out of your place of business, which increases the risk of accidents, such as slip and fall accidents. You incur liability for each incident that occurs at your place of business.

By adding an umbrella policy to both, if needed, you protect yourself from personal and business liability potentially wiping you out financially.

Without the added protection of umbrella insurance, any accident or unwanted event in which you incurred liability could wipe you out. A judge issues a settlement awarding an injured party full compensation for their medical bills plus pain and suffering. It equals $250,000, but your home policy covers just $25,000. The rest comes out of your own pocket, probably your retirement savings, if you don’t obtain an umbrella policy.

In your 20s or 30s, you have decades to make up the money from the retirement fund, but in your 50s or 60s, it slashes your savings. You’d need to keep working longer to make up the money or retire more humbly. Neither seems amenable, so we suggest an umbrella policy.

Give Us A Call

Contact Maschoff Insurance in Ankeny, IA to purchase an umbrella policy to protect your financial future from liability settlements that could impede your retirement plans. Umbrella policies cost little but protect you a lot.

Floods are the most common type of natural disaster in the United States, and they can cause significant damage to your home or business. They’re also not covered by typical homeowners’ insurance policies because flooding is typically caused by stormwater runoff that originates outside of your property.

Umbrella Insurance and Floods

Many people think Umbrella insurance covers floods because the policy gives you additional liability insurance, but that’s not typically the case. Umbrella insurance typically covers:

• Bodily injury liability: This pays for injuries that your policyholder causes to another person.
• Property damage liability: This pays for damage caused to someone else’s property by your policyholder.

What Should You Get for Floods?

If you live in an area where flooding is a common risk, it’s important to have separate flood insurance so that your home and belongings are covered. In the event of a disaster, typical homeowner policies will not cover damage from floods because they’re typically caused by heavy rain or storm surges.

Flood Insurance Policies

Flood insurance typically covers the loss of your home, personal belongings, and any fixtures or fittings that are a part of your home. When buying a flood insurance policy, it’s important to ask questions about what isn’t covered by the plan and what is included.

Benefits of a Flood Insurance Policy

A typical flood insurance policy will cover your home’s structure and its contents, including appliances. If you need new carpeting or doors after a flood, your policy will also cover these items.

Is Umbrella or Flood Insurance Policy Right for You?

Umbrella insurance provides your policyholders with an additional layer of liability insurance that covers incidents that happen outside of your policyholder’s normal coverage. If you’re still unsure whether umbrella or flood insurance is right for you in Ankeny, IA, call Maschoff Insurance today, and we can help you make the right decision.