Because a personal umbrella policy is like a type of excess insurance, it is relatively inexpensive compared to traditional home or auto insurance.
In an accident, you can’t control who you might injure, making umbrella insurance all the more important. If you injure, for example, the CEO of a large company, you will owe a great deal of money for lost wages.
The greater your net worth, the more insurance protection you need to keep your assets safe. An umbrella insurance policy can be the perfect solution to extending your insurance coverage.
When it comes to your business, a carefully constructed umbrella insurance policy can cover all of your insurance needs, saving you money and leaving you with much more comprehensive coverage.
Umbrella insurance can be critical in some areas where there are limits on policies. Federal flood insurance, for example, can be no greater than $100,000 coverage for contents and $250,000 for structures. However, umbrella insurance is available to extend those limits.
If there is a gap between your assets and your insurance coverage, then chances are you need an umbrella policy as well. Three things to consider include whether you own a home, whether you own any significant assets, and whether you have built up an investment portfolio or retirement savings account.
When you have a real estate portfolio, you face increasingly greater chances of someone being injured on your properties – even if they are there uninvited. Umbrella liability insurance covers you should someone be hurt on your land and your standard policy is not sufficient to handle the costs.
Basically, umbrella insurance is designed to help protect you from major claims and lawsuits. This, in turn, will help protect your assets for the future.
Have you worked hard and built up a comfortable savings account, investment portfolio, and emergency fund? If you don’t have an umbrella insurance policy for personal liability, you could be a single accident away from bankruptcy. Accidents with serious injuries can lead to exorbitant legal judgments. If your insurance is exhausted, you’re on the hook personally for the rest of the judgment.
When it comes to auto insurance, I thought all I needed to be concerned about was having the minimum liability coverage required in my state. That’s only partially true. Minimum requirements are generally quite low and only protect from getting a traffic ticket. If you have minimum coverage and are at fault in an accident damage above that limit, your personal property is at risk.
Just like with any other kind of policies, umbrella coverage can have some things it won’t cover depending on the policy (such as punitive damages or business endeavor claims). An insurance expert can help you go over the policies to find the coverage that’s right for you.
Could I really lose my home and other personal property to someone that sued after a traffic accident? The law varies from state to state, but there are states that allow a successful plaintiff to force the sale of a house to recover any equity to apply to a legal judgment or settlement.
Do you have a savings account for your child’s college education? Make sure that these savings are 100% secure with an extra liability umbrella insurance coverage policy which will protect you in the event of an accident.
One benefit of having an umbrella policy is that it helps you avoid the hassle of hiring your own attorney to defend you if someone sues you. Instead, the insurance company will cover this cost.
Do you have any significant assets that you absolutely do not want to lose if you found yourself liable for a significant legal claim? The rules vary from state to state, but in some cases everything from savings accounts, emergency accounts, and college funds are at risk.
There are many factors that make umbrella policies a smart choice. Do you have a maid or other people working for you in your home? A slip and fall accident could lead to a significant lawsuit.
There are several personal liability situations that are covered by umbrella insurance where they may not be covered elsewhere. This includes lawsuits involving slander, libel, false arrest, malicious prosecution, and shock or mental anguish.
Many experts recommended that you have at least a million dollar umbrella policy to provide liability coverage beyond the limits of your auto and homeowners policies, even if you have less than a million in assets. This will protect you in the rare event you are sued and forced to pay a legal judgment.
There are two basic steps involved in determining whether or not you need umbrella insurance. It’s recommended that you first add up your assets (the worth of your home, bank accounts, stocks, and other assets) and then see how much liability coverage you have on your homeowners and auto policies.
Did you know that you can obtain short term umbrella insurance which will cover you for a year or less? Extra liability umbrella insurance coverage can provide additional security and peace of mind for as long or as little as you may need.
Every year you should conduct an evaluation of your homeowner’s insurance to make sure it has kept pace with increases in property values and improvements you have made. However, no matter how up-to-date it is, there are still limits. You can increase your level of protection by adding an umbrella policy to your existing coverage.
Even if you don't have significant assets, your lifestyle could dictate the need for an umbrella policy. Do you publish a blog? What if someone sued you for libel or slander and won a huge judgment as a result of something that was published?
Whether you are moving or going on a road-trip, an affordable traveler’s umbrella policy can help to protect you in the event of an accident. This type of extra liability insurance can also be customized for short or long term policies.
If you are concerned about the risk from accidents on your property, damage caused by a pet and slander, libel and defamation lawsuits, umbrella insurance offers valuable protection.
