Umbrella Insurance is critical to your insurance plan
If you were found negligent or liable for someone else’s bodily injury or death, would you have enough insurance to protect your assets?
Umbrella insurance is a stand-alone liability policy that provides an additional limit of liability over and above your underlying liability limits that are already on your homeowners and auto insurance policies.
Life can be unpredictable and as much as we plan for the best, sometimes the worst can happen. This is where umbrella insurance comes into play and provides you with additional coverage that goes above and beyond to protect your assets.
Umbrella Insurance example scenario
To get a better sense of what Umbrella Insurance is and how it would work in a real life situation, it helps to think about it in action.
Suppose you are a homeowner with a $500,000 liability limit on your homeowners insurance policy. One day, your child’s friend comes over to your house to play and falls down the stairs, suffering serious injuries. The friend’s parents file a lawsuit against you, alleging that you were negligent in maintaining your property and failed to warn the children about the hazards of the staircase.
The medical bills and legal costs associated with the lawsuit quickly add up, and before long, you find yourself facing a judgment of $1 million. Unfortunately, your homeowners insurance policy only covers up to $500,000 in liability, leaving you personally responsible for the remaining $500,000.
Fortunately, you have an umbrella insurance policy with a $1 million limit that kicks in to cover the difference. Without the umbrella policy, you would be forced to sell assets or even file for bankruptcy to pay the judgment. With the umbrella policy, however, you are able to satisfy the judgment and move on with your life, protected from financial ruin.
- your dog bites a neighbors child
- fire at your condo spreads to other units
- accident at your rental property
- serious car accident injuring someone else with high medical cost
How much does Umbrella insurance cost?
The cost of an umbrella insurance policy can vary depending on several factors, including the amount of coverage you need, your risk factors, and your location. In general, umbrella insurance policies are relatively affordable, with annual premiums typically ranging from a few hundred to a few thousand dollars, depending on your risk profile.
The exact cost will depend on your individual circumstances, such as the value of your assets, your occupation, and your driving record. It’s important to note that while umbrella insurance may add to your overall insurance costs, it can provide invaluable protection against potentially devastating financial losses. It’s a wise investment for those who want to ensure they are adequately protected in the event of an unforeseen accident or lawsuit.
To get a better idea of the cost of an umbrella insurance policy, it’s best to consult with an insurance agent who can provide you with a personalized quote based on your specific needs and circumstances.
How to get started with your umbrella insurance quotes
It is simple! Get a free, no-obligation quote from us by filling out the required information in the form below. After completing the form, you have the option to upload your current declaration pages. This way, we can verify that you have not missed any crucial coverage. If you’d rather speak with us directly, feel free to give us a call. We strive to simplify the process for you.