This might be the first time you are hearing about Umbrella insurance and you may think, âSounds like something extra I probably donât need.â âSince itâs extra, itâs probably also expensive.â
You may have also taken the name literally and imagined a larger all-encompassing insurance policy that covers all the other policies you have, like an umbrella actually.
Have you ever opted out of an extra protection purchase just because it was optional?
Whether we were juggling a tight budget or didnât see the need for the additional cost, most of us have lived to regret opting out, at least once. Maybe twice. Maybe after it was too lateâŠ
Remember the extended protection plan you could have bought with your new Smart TV? You never realized how beneficial it would have been until after the accident that broke the screen.
While tackling a mishap with an everyday piece of electronics probably wonât make or break your financial security, the principle of this scenario is important.
What if you could have bought extra protection for your home or auto policies that would have covered unexpected and very costly expenses without jeopardizing your daily finances?
An umbrella policy provides excess liability insurance that goes beyond the coverage you already carry.
It isnât limited to home and auto; it can include motorcycle, RVs and watercrafts. It protects you from expensive situations where medical, legal, or repair costs exceed the coverage of your base policies. For example:
A homeownerâs policy will typically cover dog bites, but the base coverage can be exhausted because of medical bills or a lawsuit encompassing pain and suffering. Umbrella coverage kicks in when base liability has reached it maximum payout.
Watercraft accidents can become just as costly as roadside accidents. Damages and repair bills can rapidly add up, as can medical expenses, especially if you are liable for the bills of multiple people. An umbrella policy safeguards your financial stability so that a boating or recreational accident does not also wreck your finances.
It may sound crazy, but it doesnât take much to hit a building or other bit of property. All it takes is a simple misjudgment of time and space or a reflexive reaction to danger. Your auto policy will pay for property damages, but it might not cover everything.
Accidental injury comes in all shapes and sizes. From playing baseball in the backyard and the ball hits someone to a slip ân slide (intentional or not) incident, itâs entirely possible for someone to get hurt while on your property, and you are liable. Your homeownerâs policy provides base liability for covering medical bills and such, but those can add up fast. And if a lawsuit somehow becomes a factor, base liability can vanish overnight.
Umbrella coverage comes in $1 million increments. It might seem like a big number, but medical, repair, damages, and legal fees can balloon at an alarming speed. Imagine having a cool million covering it all so your immediate paychecks donât have to.
According to the Insurance Information Institute, âFor about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.â
It is possible to adjust base policy deductibles so that an added umbrella doesnât increase your current out-of-pocket, but this could cause a crunch in the long run.
Our trusted local advisors will review your existing policies and help you decide on the right coverage to best protect your investments and financial freedom both now and in the future.
Thanks to decades in the insurance business, we know firsthand that the smartest choices made today protect your tomorrow.
Unexpected accidents and the fallout that follows can wreak financial chaos. The good news is with our experience on your side, we can reduce the chances of financial ruin. Umbrella coverage is just one tool we use to keep you safe.
Letâs schedule a call to discuss how we can best safeguard your today, your tomorrow and your future.
Call 855-INSURED or complete the form below.
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