Umbrella Insurance: A Critical Component of Your Insurance Plan
Imagine being held responsible for someone else’s bodily injury or even death. Would your current insurance provide enough coverage to protect your assets?
Umbrella insurance is a stand-alone liability policy that offers an additional layer of protection beyond the limits of your existing homeowners and auto insurance policies.
Life is unpredictable. Despite our best efforts to plan, unexpected and severe incidents can occur. This is where umbrella insurance steps in, offering extra coverage to safeguard your assets against unforeseen events.
Understanding Umbrella Insurance with a Real-Life Scenario
To better understand how umbrella insurance works, let’s consider a real-life example:
Suppose you’re found liable for causing a multi-vehicle car accident, resulting in damages and injuries totaling $850,000. However, the liability limits on your auto policy are only $300,000.
In this scenario, your auto insurance would cover $300,000 of the damages, leaving you responsible for the remaining $550,000 out of your own pocket.
With an umbrella policy, you could extend your liability coverage beyond the maximum provided by your underlying policies. For instance, if you had an umbrella policy with a limit of $1 million, it would cover the additional $550,000, protecting you from significant financial loss.
Other Examples of Umbrella Insurance Coverage
- Dog Bite Incident: Your dog bites a neighbor’s child.
- Condo Fire: A fire in your condo spreads to other units.
- Rental Property Accident: An accident occurs at your rental property.
How Much Does Umbrella Insurance Cost?
One of the most appealing aspects of umbrella insurance is its affordability. Most insurance carriers offer coverage starting at around $150 per year. The cost increases based on the number of cars and homes you need to cover, but generally, it’s a cost-effective way to manage significant risks.
Even with a premium of $300 per year, the insurance company would be responsible for at least $1 million in coverage. This is a tremendous value, especially in a litigious society where a single accident could potentially lead to financial ruin.
Why You Should Consider Umbrella Insurance
Given the rising costs of medical expenses and the potential for large liability claims, it’s sensible to consider purchasing umbrella insurance.
To get started with a quote, call our office or visit our quotes page. Our team will shop the marketplace to find the best coverage options for you.
Please note that most insurance carriers require you to have your auto insurance policy with them to qualify for their umbrella coverage. However, stand-alone umbrella policies are also available for special situations.
To begin the process, enter your details at our contact us page or call our office at 573-783-0090, and we’ll guide you through getting the coverage you need.
