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.
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 – unless you have a personal excess liability “umbrella” policy.
How Do Umbrella Policies Work?
Umbrella 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.
Does It Protect More Than My Assets?
In addition to increasing your current personal liability limits, an umbrella policy can also provide increased uninsured and underinsured motorist liability coverage. For example, if you or a family member are in an accident and the other party does not have insurance or does not have enough insurance to cover your injuries, the umbrella policy can pay the additional amount over the amount provided by your auto insurance.
How Can I Get A Quote?
Please feel free to contact us to get a quote on this incredibly valuable coverage.