Let’s start with the basics. You have some assets like a home, a car, retirement savings, you travel abroad and have kids and pets. Dream life, right? So, you want to make sure everything is properly protected. What do you need? Insurance! You did your homework and got auto and homeowner insurance policies. Great! You feel safe and life is good! What If we tell you that you can still lose everything you have? Especially if you don’t have umbrella insurance!
Do you have enough liability?
Auto and homeowner insurance are great to have, but they leave gaps in coverage and limits in payments. If an accident happens and you get sued, your insurance may not provide enough coverage and you may have to pay liability from your assets and future income. For example if your insurance policy covers $500,000 and you have to pay $1 million what about that other half a million?
And that’s not so rare by the way, more than 13% of personal injury lawsuits total over $1 million. This is where a personal umbrella insurance policy protects you! But that’s not all of it. We are going to add some facts about the umbrella insurance we’re sure you don’t know:
Umbrella Insurance gives you extra protection
By that we mean extra protection not only on your homeowner but on your auto insurance as well. Let’s say you have $500,000 in liability insurance on your auto policy and $1 million on your umbrella policy. You will have a total of $1.5 million in liability coverage. The same is with your homeowner policy.
When you travel
Your umbrella insurance policy protects you no matter where you are. If you travel abroad and get in an accident or damage someone else’s property you are covered. That doesn’t mean to be reckless, but if you are that’s fine.
You can afford it
We will surprise you with that! An additional $1 million personal umbrella policy can cost you between $150 to $300 A YEAR. Also, you can add another $1 million for about $75 more. Divided by month it’s gonna cost you as little as $12.50 per month!
Do you have a boat?
If yes, we envy you! But do you know that your boat liability can also be covered by an umbrella policy? Well, now you know. You get on board and sail away in international waters? No problem, you are covered abroad as well.
You are liable for your kid’s and your dog’s actions
Your son is 16 now, and wants to drive your car? Chances are he is going to end up in a car accident at some point. Let’s hope no one will get injured, but if someone does, you will be liable. On the other hand your dog probably can’t drive a car, but it can sure bite. He is a good dog we know, but sometimes dogs can act in aggression without warning and bite someone. Guess what, you are liable for this too. Umbrella insurance can protect you in both cases.
Some other umbrella insurance facts:
- In many cases umbrella insurance is relatively inexpensive as the purchase of umbrella insurance from many companies would give a discount on your personal auto and home insurance
- High value customers with a lot of personal assets can consider higher limits on umbrella insurance. Limits of 25 millions or even higher are available as well as monoline umbrella options.
- Umbrella policies are very good for landlords. Landlords are generally responsible to maintain their properties safe and in good conditions. Umbrella insurance can protect landlords if they face defense costs from tenant lawsuits.