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.
So why might you need umbrella insurance? While you may have auto insurance coverage, that policy needs to cover damage to the car(s), any medical bills and lost wages, and perhaps even a legal defense representation. After adding this all up, often the original policy isn’t enough and you could benefit from the extension an umbrella policy affords.
Some common endorsements to a personal umbrella policy include being able to remove coverage for watercraft or RVs if you do not own them.
The more active and involved your children are in the community, the better sense an umbrella insurance policy makes. What with carpools, friends of your children visiting, or kids just playing in the yard, the chance for injury is greatly increased. Protect yourself from damaging litigation with an extended liability policy.
Insurance experts say that homeowners with a trampoline should consider an umbrella policy. Serious accidents are possible that could lead to expensive legal judgments or settlements. Unfortunately, being careful is not enough to stop an accident.
Do you already have an umbrella policy? This is great news, but most people’s financial situation changes yearly, so it might no longer be enough. An insurance expert can go over your current financial status to help you find the right umbrella policy.
With umbrella insurance policies, coverage limits will generally start at around a million dollars and can go as high as ten million dollars for qualified applicants. The amount of coverage you need will depend on your specific assets.
If you have employees, talk with your representative about an umbrella liability policy to supplement worker’s compensation or other insurance you may be carrying. When claims exceed the limits of your basic coverage, you need something that has your back.
If you are a professional, liability insurance alone may not be enough to keep you protected. Often the limits of these types of policies are not enough to cover a person’s assets.
There are some events that are not typically covered by liability insurance. For example, neither libel nor slander is usually covered. If you become an active blogger on different topics, an umbrella policy to protect against libel or slander actions could become crucial.
Sit down with your insurance expert to determine your assets and what's at risk if you are sued for millions of dollars. Judgments from fatal car accidents typically exceed $1 million.
Did you know that umbrella policies did not become widely known and sold until the 1960s? In fact, many businesses did not purchase their first umbrella policies until the 1970s.
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.
If your family has accrued assets over the years, including a home or homes, retirement savings, brokerage accounts, and cars, you may need to protect those assets with an umbrella policy. This is important, as most basic insurance policies only cover a portion of these assets.
Do you have to get umbrella insurance with your primary insurance carrier? No. Even if you have a primary insurance policy through another insurance carrier, you can still obtain extra liability umbrella insurance for an affordable price.
Do you have valuable items, such as antiques and jewelry, stored in the attic in your home? In the event of a theft or loss of the valuables due to a fire, your liability coverage may not be sufficient. The only way to get the full value is with umbrella insurance coverage, according to experts.
Generally, your primary policies will cover personal injury and property damage, but umbrella coverage is a little more extensive. Umbrella policies cover you in case of any bodily injury or property damage cause by you, your pets, or your dependents, directly or indirectly.
An umbrella policy is not just additional coverage for one insurance policy: it’s additional coverage for all of your policies, which is where it gets its name. If a claim goes over the limits on any of them, the umbrella policy will step in and take over.
People that are typically covered under a personal umbrella policy are you, your spouse if he or she lives with you, relatives, and other people under 21 living in your home under your care.
Some qualities that make getting an umbrella policy a good idea include having a high-profile career, owning a farm/ranch or waterfront property, and living in an affluent neighborhood.
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.
A common myth about umbrella insurance is that it carries a hefty price tag – but actually umbrella insurance is some of the most affordable liability insurance you can get, with an average cost of only a few hundred dollars a year.
What does my net worth have to do with umbrella insurance? This type of insurance can provide additional coverage beyond the normal limits of auto and homeowner’s policies. Understanding your net worth means you are aware of what is truly at risk in the event of a large lawsuit.
When was the last time you conducted an inventory of the property in your home? Experts say it’s a good idea to have an inventory in writing, or on video, as a way to prove losses in the event of a fire or other homeowner’s claim. The inventory may also remind you of the number of valuable items in your home that may need to be protected by an umbrella policy.
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.
As your financial circumstances improve, you need to protect your assets from attack in the event you are sued. An umbrella policy is designed to pick up where your homeowner’s policy leaves off to keep you protected.
If you are looking for a way to incorporate an umbrella policy into your budget, boosting the deductibles of your auto and homeowners’ insurance can reduce these premiums by hundreds of dollars.
