Times Have Changed
It’s not just wealthy people who have to worry about lawsuits. If a jury finds you liable for someone else’s injuries your home or auto insurance may not cover the entire award. And you may have to pay the price regardless of your financial circumstances. A personal umbrella liability policy adds additional protection.
Consider this scenario: You have an auto accident and are found to be at-fault. The injuries of the other party amount to $750,000. If your auto insurance provides $500,000 liability coverage, the remaining $250,000 will have to come from your own pocket. You could lose your house, savings, and even your future earnings.
How Do Umbrella Liability Policies Work?
Umbrella liability policies are referred to as “excess insurance” because they supplement the liability coverage in your auto and home policies. For example, your auto policy would still pay the $500,000 towards the above claim, but the remaining $250,000 would come from the umbrella policy. Umbrella coverage generally ranges from $1 million to $5 million. The annual premium for a million-dollar policy averages about $350 for a family with one home and two cars. But, the amount may vary based on your location, ages of drivers, number of cars and residences that you own, and your underlying insurance liability limits.
Why is it called Umbrella Liability?
The umbrella liability policy does more than simply provide excess coverage over your home and auto insurance. It also extends excess liability protection over other personal policies you may have, such as recreational vehicles, boats, rental properties, or secondary residences. In essence, it creates a single “umbrella” of additional liability protection over all of your personal liability exposures.
Does It Protect More Than My Assets?
An umbrella policy does more than extend your liability coverage. It can also increase your protection against an uninsured or underinsured motorists. For example, if you or a family member is involved in a serious accident and the at-fault driver either has no insurance or insufficient coverage to cover your injuries, the umbrella policy can provide additional protection above what is available on your auto insurance policy. This coverage helps protect you and your loved ones from the financial impact of a significant loss caused by someone else.
How Can I Get A Quote?
Contact us to get a quote on this incredibly valuable coverage.