Umbrella Insurance Policies Provide Extra Protection.
A rain umbrella protects you from getting wet, but doesn’t stop the raindrops from falling. Umbrella liability insurance is similar in that it cannot prevent accidents or mishaps, but can make those things less devastating financially.
Your primary insurance coverage, like your homeowners and auto policies, includes liability coverage up to a certain limit. Liability is your legal responsibility to pay for damage to a person or to a person’s property. An umbrella policy increases your liability coverage substantially—more types of claims are covered and at a higher limit.
To get all the information you need about umbrella liability insurance, contact a member agent in the Trusted Choice® network. There are over 22,000 member agencies with 27,000 locations nationwide, so there is an independent agent in your area ready to discuss your needs.
In our litigious society, we must protect our assets from lawsuits. The primary reason for carrying umbrella insurance is that you never know what you may be responsible for. Accidents happen, and when they do, you may be held legally responsible for resulting bodily injury and property damage as well as legal fees, all of which can quickly escalate to hundreds of thousands of dollars.
If you cause an accident, the legal system makes a judgment that, between you and the injured person, you should be the one to shoulder the financial repercussions. The person who suffered damage is then entitled to collect what is owed by claiming insurance proceeds. If the money provided by the insurance company is inadequate, a claim may be made on your income, assets and savings.
Adequate liability insurance protects you from these financial consequences. Pain and suffering, lost wages, medical bills and property damage are some of the items you may be sued for that are covered by umbrella liability insurance.
A personal umbrella insurance policy provides additional protection by increasing coverage for liability in two ways:
The $300,000 liability limit in the prior examples may seem like a lot of coverage in the abstract, but can easily be exceeded in serious accidents.
The right amount of liability insurance for any individual, family or business depends upon a number of factors. These include the risks you face and the assets you want to protect. For example, if you have a passion for speed boating, you have an increased risk over someone who only takes a dinghy out on the occasional fishing excursion. And if you have a high income, you are more likely to be sued in the event that you are at fault for injury to others.
Some professionals recommend that you add up all of your assets and then double that figure to determine the amount of liability coverage needed. Others look to the costs of medical payments and legal fees, which can vary considerably by region.
To figure out the right amount of liability insurance for you, talk to a knowledgeable agent. Independent agents in the Trusted Choice network will discuss what kind and amount of liability coverage you should purchase. These agents work with multiple insurance companies and they advocate for you, the consumer, not any one company. They can compare rates and options on your behalf.
You hope these situations never occur, but statistically they sometimes do. You can limit the consequences with an umbrella insurance policy.
You may want to give special consideration to an investment in umbrella insurance in the following circumstances:
Get a free quote from an independent Trusted Choice member agent and get all of your questions answered. Your agent can give you information on the kinds of liability risks and costs associated with your particular situation. Contact an agent today for an umbrella insurance quote.