7 Benefits Of Umbrella Liability Insurance?
Are you protected from large claims and lawsuits?
Umbrella liability insurance can be protection for your assets from large claims or lawsuits. Do you like to plan ahead for your financial protection? You might want to consider purchasing umbrella liability insurance. Remember, insurance is about managing your risks.
Keep reading for seven benefits of an umbrella liability insurance policy. Maybe the time is right for you to get an “umbrella” to protect yourself for a rainy day.
1. The low cost for umbrella insurance is reasonable.
The first $1 million of coverage costs as little as about $16 a month ($200-$400 per year). Each additional $1 million is only about $100. Raising your regular deductible might even provide enough savings to pay for an extra million dollars of coverage, without you having to pay any extra monthly!
2. It provides extra financial protection.
If you were to be sued for liability, you could fall back on the umbrella policy. The “umbrella” can provide extra coverage past the limits of your homeowners’ or car insurance policy. Keep in mind, if you cause an accident, liability claims may easily go way past your former policy limits for property damage or medical care.
3. Your umbrella policy will be additional insurance protection.
Purchase an umbrella liability insurance policy as an addition to your homeowner or auto insurance policy. You may even be able to add to other coverage to increase your protection, like your boat insurance, with an additional charge.
4. Your legal fees are covered by an umbrella liability policy.
If a liability suit is brought against, your Umbrella liability coverage will even pay for your legal fees. Now, you have a friend in court.
5. “Regular Joe” can get umbrella coverage too.
You don’t have to be wealthy. Your assets don’t have to be large. It’s not necessary for you to have $1,000,000 worth of assets in order to get umbrella coverage. Protect yourself, because someone could still sue you for more than you’re actually worth. Keep in mind, you could get sued for a million dollars and only have assets totaling $200,000. So, your future income and assets can also be at risk, unless you have an umbrella policy protection!
6. Good thing: umbrella policies are large and wide.
The least liability amount you can obtain through an umbrella liability policy is $1 million. And, most umbrella liability policies require that your main policy (vehicle or homeowner’s insurance) already cover you for at least $300,000.
7. Did you know, your family and pets are also covered?
An umbrella policy covers everyone in your family living in your household, including your pets. So, even if your dog gets loose and causes damage, you’re still covered. Many policies even extend coverage for other people, such as when you let someone borrow your car and they get in an accident.
Conveniently, you can obtain an umbrella liability policy through your local independent insurance agent. So, just ask your current auto or home insurance agent about adding an umbrella policy to your existing coverage. Looking for a discount? You might even get discounts on all your other liability policies when you bundle all of them together with the same carrier.
Want an example of how your umbrella liability policy would work?
Say you’re on a road trip and you have normal vehicle property liability coverage of $50,000. Now, suppose you end up involved in a major auto accident. Maybe, you collide with an expensive recreational vehicle (RV). And, that RV is less than a year old. Suppose that the insurance estimate to repair the RV is $90,000.
If you only have a regular car insurance policy, it would only cover $50,000 of repairing the RV’s damage. That leaves you short $40,000. But, suppose you were wise and already had an umbrella liability policy, the remaining $40,000 worth of damage would get be paid by insurance. You won’t have to pay anything out of your own pocket (other than your primary car insurance deductible amount).
It’s a great feeling knowing that you can now protect all your current and future assets, plus cover any legal fees, with such a small investment. Now you’re prepared just in case someone brings a liability suit against you.
Protect you, your family, and your assets with an “umbrella” policy!