Umbrella insurance is an extra layer of protection that can protect you from financial devastation. This often-overlooked coverage helps protect you from legal liabilities that exceed your pre-existing coverage. Today, we'll dive into what umbrella insurance is and why you should add it to your insurance portfolio.
How Umbrella Insurance Works
Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of your existing auto, homeowners, or renters insurance policies. This coverage provides additional coverage for property damage, bodily injury, and personal liability when primary insurance policy limits are exceeded. This additional coverage is a great way to protect your assets from many excessive liabilities your family may face.
What These Policies Cover
Depending on the policy, umbrella insurance covers a variety of unexpected circumstances. This coverage provides extra protection that can help shield your assets from sudden legal fees, settlements, or medical bills.
For example, if you’re driving and cause an accident resulting in multiple injuries and damages, your umbrella insurance will cover any remaining costs that exceed your auto policy limit. Similarly, if injuries occur on your property, this coverage helps if any medical expenses exceed your homeowners’ insurance policy limit. Umbrella insurance can also provide coverage for personal liability or libel if someone sues you for any harm caused.
Why do You Need Umbrella Insurance?
Many people believe that they don't need umbrella insurance because they've purchased coverage for their home, car, and other important assets. However, the reality is that accidents happen, they're always unpredictable, and may result in exorbitant expenses. If you or a family member cause a serious accident resulting in high damage, your preexisting coverage may not cover all the costs.
The preexisting coverage of umbrella insurance can protect your assets from damages that exceed the limits of your standard policies. If you have a high net worth or own assets like rental properties or vacation homes, you may be at greater risk of being sued. Even if you have insurance for all your assets, lawsuits can easily exceed policy limits, leaving you vulnerable to significant financial losses.
How Much Coverage Is Needed?
The amount of umbrella insurance you need will depend on your personal situation and the level of risk you're facing. Most experts recommend purchasing a policy that's high enough to cover all your assets, including your home, vehicles, and savings.
Keep in mind that while many policies are affordable, the cost will depend on factors like the policyholders’ ages, number of vehicles, and previous claims history. The premium for an umbrella policy can range from $150 to $300 per year for $1 million of coverage. Additionally, if you have multiple properties or vehicles, their presence could increase your rates.
Speak with an insurance agent today to help you determine the coverage amount that's right for you. Generally, most insurance companies recommend purchasing a policy worth least $1 million. However, for those with a high net worth or elevated risk, you may need more coverage.
Schedule a Meeting Today!
Umbrella insurance is a valuable tool to protect yourself and your assets from unexpected legal liabilities. Whether you're a homeowner, business owner, or just want to enhance your family’s financial safety, umbrella insurance can help provide the peace of mind you need. Don't take chances with your financial future—speak with an insurance agent today to determine your family's best coverage options.
If you’re looking for a community-focused insurance provider, look no further than Omega Insurance Group. Our free quotes and personalized services have helped our clients find the best, tailored coverage options. Lastly, call us today if you’d like to set up a meeting with one of our talented agents. We look forward to hearing from you and finding the best coverage for your needs!