Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. Generally, Umbrella liability is written to be an added layer of liability to cover over your home, rental property, auto, and boat policies. With lawsuits and court awards in the millions, having this extra peace of mind is essential. And besides, if you unintentionally hurt someone, wouldn't you want them to be taken care of? An Umbrella policy usually starts around $250/year.
Especially when it comes to unexpected accidents or claims…
You never know when it might rain. Just like the name implies, this type of policy acts like an umbrella, providing protection against a wide range of potential financial dangers and unforeseeable mishaps.
Umbrella insurance does not cover:
However, what exactly is covered by your umbrella policy depends on how you decide to set it up. In most cases, umbrella insurance protects you from:
Yes, your existing insurance may protect you to an extent, but an umbrella policy goes much further for less cost than upping the limits on your existing policy because it covers for different types of risks. Umbrella insurance is also portable, in most cases, so it can follow you when and wherever you travel.
Did you know that some insurance carriers often an option to purchase $1,000,000 Uninsured & Underinsured Motorists Liability on Personal Umbrella policies? If you are seriously injured by a hit & run driver or someone with low liability limits or no coverage at all, you can look to your own Personal Umbrella policy if you have this option added.
Since the terms of umbrella insurance policies will vary, depending on insurance companies and your own personal needs, a qualified insurance agent from our firm is the best person with whom to discuss the benefits, restrictions, and coverage from each carrier they represent.
Actually, anyone with a job, who expects to keep the income they earn, could benefit from having an Umbrella insurance policy.
What would happen, for example, if someone made a delivery to your house, slipped on a sidewalk recently wet by your sprinkler system, and suffered severe head injuries from the fall. They will sue you, of course.
Your Homeowners insurance kicks in and pays up to its maximum limits. But the jury finds that you are responsible for an extra $500,000 over your Homeowner’s limits.
Ask yourself: How long would it take you to pay that off with your weekly paycheck?
Umbrella insurance covers the amount that exceeds your Homeowners coverage, sparing you from a financial nightmare, along with paying the attorney to help you survive it. Limits start at $1,000,000. The jump from $1,000,000 to $2,000,000 is usually quite small premium-wise. Many policies offer up to $5,000,000. Higher limits are available.
Relative to the amount of protection you get, umbrella insurance is highly affordable. Your specific cost will be determined by:
You may save even more money by purchasing Umbrella insurance from the same carrier who provides your home and/or auto insurance - check with us to make sure.
Tell me again why I need Umbrella Insurance?
A long time ago, you set some goals, made a plan, worked hard, and got “there.” As you did, you accumulated possessions. Not to be ostentatious, but enough to make you and your loved ones comfortable.
You are rightly proud of these accomplishments. In fact, you have protected them with the best insurance you could.
Now, you need extra protection, an umbrella insurance policy. A policy that will cover you above and beyond what any single policy might cover.
For example: What are your limits on your auto and home liability policies: $300,000 to $500,000?
Okay, you say, the insurance will cover it. But what if the amount is over the policy limits? (That happens, especially if you have nice things.)
Your standard home or auto policy is likely not going to be enough to cover what the plaintiff is asking for.
How will you pay the judgment? How will you even defend yourself in such a lawsuit? Can you actually lose all you have strived for?
You bet you can. Not only can you lose what you worked for, you can lose part of your wages for the rest of your working life. (Most people don’t know this.) Having your wages garnished will affect your future and how you live.
While most insurance products are similar in price and function, insurance providers vary when it comes to structuring a policy tailored to you.
After all, there is no such thing as a one-size-fits-all insurance policy when it comes to your business.
Contact us today, and we will help you protect what matters most.