What do you own that would be at risk in a lawsuit? Your savings? Your investments? Your assets? Perhaps your future income? Far too many people have spent their lives working to build a comfortable future, only to have it all come crashing down in a lawsuit. Legal fees, judgments, and settlements can total millions of dollars that most people simply cannot afford to lose. Sure, the liability on a standard insurance policy might cover some of the cost, it is still possible that you could be left with any excess liability that exceeds your coverage limits. Fortunately, there is a way to protect yourself from such a scenario, and it probably costs much less than you might think.
What is Umbrella Insurance?
If you think of home and auto insurance as a way of protecting your things, think of umbrella insurance as a way of protecting your future. It is the additional coverage you need to cover any liability that exceeds the limits on your primary insurance policies. It’s always there, waiting in the background to pick up any slack left behind by your standard coverage. The only difference is in the limits of the policy.
Whereas standard auto or homeowner’s insurance may have the liability protection of just a few hundred thousand dollars, umbrella insurance limits usually start at $1 million. The extra coverage is available at a fraction of the cost of standard insurance coverage – usually under $200 per year for a policy. Higher coverage amounts are available and tend to become more affordable as liability limits are increased. In other words, doubling or tripling your coverage is unlikely to double or triple your premiums.
When Umbrella Insurance is Important
Umbrella insurance is essential for anyone who has assets or future income that needs to be protected. From recent college grads just starting their careers to recent retirees hoping to spend decades living off their nest egg, anyone could find themselves at the end of a lawsuit and on the brink of financial ruin. An umbrella insurance policy is a responsible and affordable way to protect yourself against the one incident that could otherwise threaten your hopes and dreams.
In addition to covering property damage and bodily injury liability claims, umbrella insurance can also deliver a broader form of protection with coverage for claims that may not be covered by other types of policies. Examples include coverage for slander, false arrest, libel, and damage to rental property when traveling abroad. It can also help cover your legal defense fees if you are sued.
How Much Umbrella Insurance Do You Need?
When you choose your umbrella insurance coverage limits, you will need to consider the value of your existing physical and financial assets. This includes all your checking and savings accounts, investments, and the value of any property you own. You will also need to determine the value of your future expected income and how much could be at risk in a lawsuit. Finally, consider your actual risks and the likelihood that you will need to file a claim.
Your independent agent can help you determine how much umbrella insurance might be right for you and then shop around for a policy that fits your needs. By working with an independent agent here at Jeremy White Insurance, you can compare coverage and rates from multiple insurers. Our team will also assist you in identifying any risk vulnerabilities you may have in your existing insurance policies and offer advice for closing the gaps.
For more information about personal umbrella insurance, contact Jeremy White Insurance today.
