Your "umbrella insurance destination"
Protect your assets
If you were found negligent or liable for someone else’s bodily injury or death, would you have enough insurance to protect your assets?
Umbrella insurance is a stand-alone liability policy that provides an additional limit of liability that goes beyond your underlying liability limits on your homeowners and auto insurance policies.
Life can be unpredictable
Life can be unpredictable and as much as we plan for the best, sometimes the worst can happen. This is where umbrella insurance comes into play.
In order to get a better sense of what Umbrella Insurance is and how it would work, it helps to think about it in action.
Say you’re held liable for causing a car accident with multiple vehicles. The cost to cover the damages and injuries is $850,000. However, the liability limits on your Auto policy are only $300,000.
In this case, your insurance would pay only $300,000 for the entire accident, and you would be responsible for the remaining $550,000 out of your own pocket!
With an Umbrella policy, however, you could extend your liability limits beyond the maximum provided by your underlying policies. In this case, an Umbrella policy would provide liability limits above the limit of your Auto policy. You can set this limit and it typically ranges from $1 million up to $5 million in coverage.
In other words, you wouldn’t be left paying the remaining $550,000.
Other situations may include…
- your dog bites a neighbors child
- fire at your condo spreads to other units
- accident at your rental property
How much does Umbrella insurance cost?
The most appealing quality of umbrella insurance is that the cost is generally very low. Most insurance carriers offer coverage starting at around $150 per year. The cost of your policy changes based on the number of cars and homes you need it to cover. In general, the cost is pennies on the dollar, and all the risk is on the insurance company.
It only takes one accident to go bankrupt
In a world where medical expenses are skyrocketing, it only makes sense to think about purchasing Umbrella insurance.
Keep in mind that most insurance carriers require that you are an existing customer to sell you an umbrella policy.