Umbrella Insurance is critical to your insurance plan
If you were legally responsible for someone else’s bodily injury or death, would you have enough insurance to protect your assets? With Umbrella Insurance, you protect what you own and how you live.
Basically, Personal Umbrella Insurance kicks in after you reach the limits in an “underlying” policy, which could include:
Life can be unpredictable. As much as we plan for the best, sometimes the worst can happen…
You don’t need to be a millionaire in order to be sued like one.
To get a better sense of how it works, it helps to think about it in action. You can watch a quick video to learn more by clicking below:
Say you’re legally responsible for causing a car accident with many vehicles. Let’s also say that the cost to cover the damages and injuries is $850,000. However, the liability limit on your Auto Insurance policy is only $300,000.
In this case, your insurance would pay only $300,000 for the entire accident. What’s more, you would have to pay the remaining $550,000 out of your own pocket.
However, if you have Umbrella Insurance, you could choose how much coverage you had above your other policy. Typically, you can get anywhere from $1 million up to $5 million in coverage.
In other words, you wouldn’t have a bill for the remaining $550,000.
The best part is that it’s not as expensive as you think.
“But I’m a safe driver…”
While that may be true, Umbrella Insurance would come into play in examples like these:
- Your dog bites a neighbor’s child.
- A fire at your condo spreads to other units.
- Someone hurts themself in an accident at your rental property.
So how much does Umbrella Insurance cost?
One of the things that makes Umbrella insurance a no-brainer is that for most situations, the cost is generally very low.
Most insurance carriers offer coverage starting at around $150 per year. The cost of your policy depends on what’s underlying. But in general, the cost is pennies on the dollar. What’s more, all the risk is on the insurance company – not on you or your family.
Even if your premium was $300 per year, the insurance company would pay at least $1,000,000. Given that lawsuits happen every day, you owe it to yourself to think about Umbrella Insurance.
So how do I get started with Umbrella Insurance?
Keep in mind that most insurance carriers require that you have at least your auto insurance policy with them in order to qualify for their Umbrella Insurance.
“Stand alone” policies might also be available for special situations. We’ll help you understand your options.