Do You Need an Umbrella Insurance Policy?

Finding out how much insurance you need and how likely it is. If you have ever purchased homeowners insurance, you may be asked if you want an umbrella policy as part of your insurance coverage. In order to get the best possible coverage and to protect yourself from any unforeseen circumstances that may not be covered under a common policy, this is additional as an umbrella insurance policy for your auto and homeowners insurance Policies may be necessary to add liability coverage to protect you and your family.

here’s why.

Lawsuit protection

Kiplinger recommends that you have an umbrella policy of at least $ 1 million to provide liability coverage that extends beyond your auto and homeowners insurance policies, even if you have less than $ 1 million in assets. If ever someone sues you, and you do not have this umbrella policy, you can be responsible for paying legal fees from both current and future property. Even if you eventually win the case, the legal fees will eat into the settlement because they add up so quickly. It makes sense to get liability insurance limits that are equal to your total value – more if you can afford it. This additional lawsuit coverage will take care of defense costs as well as liability coverage for lawsuits that are not covered under your auto or home insurance. In a broader sense, umbrella policies provide coverage beyond your normal coverage:

Property damage liability

Slander / Complaint

Bodily injury liability

Legal fees and defense

you never know…

It is impossible to tell in the future, when and whom you will be injured, whether it is through a car accident or any other scenario. Think of this possible example: You injure a professional athlete, CEO, or doctor. Perhaps they cannot work for 10 years due to their injuries. Bankrate says you will be responsible for paying their lost wages, medical bills and compensation for pain and suffering, lost wages alone starting at $ 3 million and running away from there. With a minimum of $ 1 million coverage, it is better to buy an umbrella policy now than to later grab the bag. If and when something happens and you don’t have an umbrella policy, it will be too late to add one.

peace of mind

If you are concerned about losing income and assets in a potential lawsuit, then you need an umbrella policy. Considering a wise purchase in the insurance industry, it is one of those things that initially it is not very exciting to buy a new car or like a holiday, but it gives you infinite peace of mind, knowing that you have to Use, it is there and it will protect you. Plan to pay between $ 150 and $ 200 for first $ 1 million coverage, then about $ 100 for every $ 1 million you add. Want to know more about umbrella insurance policies? Contact us today to talk with a representative and learn how it can benefit you!