We live in a litigious society where you can be sued for nearly any type of damages you may be directly or indirectly responsible for. If you were found liable for another person’s loss or injury, how would you cope with the financial fallout? Legal fees, medical bills, judgments, and settlements can add up to hundreds of thousands and sometimes millions of dollars.
Even if your home or auto insurance covers your damages, it still might not be enough to pay for all of your costs. Umbrella insurance is the reinforcement you need when your home or auto insurance comes up short.
Who and What Does Umbrella Insurance Cover?
Umbrella insurance typically covers all family members in your household against accidental damages for which they are liable. That means that whether your teen driver injures a pedestrian or your dog bites someone at the dog park, you can rely on your umbrella policy to pick up where your standard auto or homeowners insurance liability leaves off.
Umbrella insurance can typically provide liability protection for:
- Accidental injuries
- Accidental death
- Property damage
- Legal fees
- Defense costs
In addition to extending the coverage on your standard policies, a true umbrella insurance policy can also broaden your coverage to include liabilities outside of the scope of your home or auto insurance, such as slander, false arrest, and damages you cause while traveling abroad. That is different from excess liability coverage, which only extends the coverage on your primary policies.
Umbrella Insurance is for Everyone
Accidents happen, even to the safest among us. What would happen if one of your trees blew over onto your neighbor’s home and injured someone inside? How would you pay for a lawyer and damages if your teenager is accused of slandering someone on social media? The truth is nearly everyone can benefit from umbrella insurance – regardless of current income or assets.
If you are young, your ability to earn an income in the years to come is perhaps your greatest asset. If you are nearing or already enjoying retirement, you may have accumulated equity in a home, sizeable savings, and other valuable assets.
Unfortunately, all of these things could be at risk if you are responsible for paying excess liability beyond that which is covered by your primary insurance. Why put it all on the line when a $1 million umbrella insurance policy can often be obtained for less than $200 per year? That is a small price to pay to protect everything you have acquired and are working hard to obtain.
Request an Umbrella Insurance Quote
The first step to obtaining umbrella insurance is contacting an agent here at The Don Neeley Agency to discuss your coverage needs. Policy limits usually start at $1 million and are typically sold in additional increments of $1 million. Most insurers impose minimum limits on primary liability coverage, which may include:
- $300,000 or $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability
- OR $300,000 combined single limit (CSL)
If you are interested in additional savings, talk to an agent at our office about discounts for combining your umbrella insurance with a homeowners policy from the same insurer.
Have you ever considered adding umbrella coverage to your insurance portfolio?
