When it rains, it pours; at least that’s what it may feel like when nothing seems to be going your way. You already have liability insurance to protect you against any accidents you may be responsible for, but what if the coverage isn’t enough? What if you find yourself facing a million-dollar lawsuit that far exceeds the limits on your auto or home insurance policy? If you have umbrella insurance, you would have an extra layer of protection that kicks in when you need it the most.
What is Umbrella Insurance?
Umbrella insurance is backup coverage for your existing insurance. When your liabilities and legal costs exceed the coverage on your primary insurance policy, you are responsible for any of the remaining expenses. Umbrella insurance is a separate policy that will pick up where your standard coverage left off, adding extra financial support that can safeguard you against financial ruin.
Imagine exposing your assets and losing everything you worked for due to one mistake. In a moment, your entire life changes, and so does your future. Consider the following example:
A young lawyer works late at the office and falls asleep at the wheel on the way home. Though he escapes with minor injuries, he causes a traffic accident that paralyzes another driver. The victim sues for injuries, physical damages, years of future lost wages, and emotional trauma. The lawyer has $250,000 in auto liability coverage, but that does not come close to covering the $2 million judgment ruled against him. Unfortunately, he is forced to liquidate his assets and relinquish years of future income to the victim for financial support. If he had umbrella insurance, however, he could have had millions of dollars in backup liability protection that would have covered the costs.
Umbrella insurance is not just for the wealthy. In fact, hard-working middle-class families can benefit from this important coverage if they have a home, retirement, college savings, investments, or future income to protect. If you were to face a major lawsuit, all of your assets could be exposed. Don’t take that chance.
What Does Umbrella Insurance Cover?
To qualify for umbrella insurance, most carriers will require that you already carry a minimum amount of liability on your home and auto policies – usually $300,000 and $250,000 respectively. The umbrella insurance will kick in for any excess bodily injury and property damage liability above those limits.
In addition, umbrella insurance provides extra coverage beyond liability protection. It can also be used to cover your legal fees and liabilities not covered by other standard policies, such as slander, libel, and false arrest. You may even be eligible to file a claim against your umbrella insurance for damages you cause when traveling abroad.
Umbrella Insurance in Scottsdale, Arizona
Since umbrella insurance provides high-limit liability protection, it may sound expensive. In reality, umbrella insurance can be surprisingly affordable. Though every carrier is different, most sell coverage in million-dollar increments starting around $150-$300 per year for a million dollar policy. In most cases, adding an additional million to the policy is more affordable than the previous million.
At Neeley Insurance, we enjoy helping our customers fill in coverage gaps with affordable umbrella insurance from some of the leading carriers in our state. For more information or to request your free quote, contact our office today.