You may think if you don’t have much to lose, no one would be silly enough to sue you. Unfortunately, lawsuits are filed every day against people with modest incomes. Personal umbrella insurance is designed to help protect you from major claims and lawsuits. As a result, it helps shield your assets and your future by providing additional liability coverage above the limits of your homeowners, auto or boat insurance policies.
Similar to your home or car insurance, umbrella coverage includes protection against costs stemming from injuries, damage to property, certain lawsuits, as well as personal liability.
You may be wondering what the point of this extra liability insurance may be considering those things are covered under your car or home insurance policies. However, umbrella insurance insures you above and beyond the limits of those policies and is designed to kick in when those claims are exhausted.
For example, consider the event in which you are found at fault for a major vehicle accident and the cost of the injuries you cause to others is $400,000, but the bodily injury limit on your auto insurance is $100,000. Your auto insurance provider will help pay for only a fraction of the cost to treat those injuries, significantly increasing your risk of becoming party to a lawsuit. An umbrella policy kicks in where that vehicle insurance cuts off, and helps pay for the remaining $300,000.
Considering the litigious society in which we live, nearly anyone can benefit from an umbrella insurance policy. It is especially important for those who have a long commute every day, commentators, professionals, and even teachers. It’s not uncommon for folks from all walks of life to find themselves on the receiving end of a lawsuit, and an umbrella policy is much more affordable than many think. An additional $1 million in umbrella coverage often costs as little as $400 a year in premiums.
For more information about how an umbrella insurance policy can protect you, knowledgeable, independent insurance agents at Financial Assurance are always available to answer any questions you may have. We can suggest policy limits best suited for you and your circumstances and assist you in finding several policy quotes from a variety of providers, ensuring the policy you choose offers the best coverage at the most affordable rates. Contact us to obtain the peace of mind only an umbrella policy can provide.