Umbrella Insurance

Get Quote

Difficulties often come in succession, particularly when they involve unforeseen accidents or insurance claims.

In times of unexpected accidents or claims, challenges can compound...

What is an umbrella insurance policy? How does it work?

What is an umbrella insurance policy? How does it work?

As the name suggests, it acts as a protective canopy, offering coverage against various financial risks and unforeseen mishaps.

Umbrella insurance, however, does not extend to:

  • Covering your medical expenses
  • Reimbursing losses to your property

The scope of coverage provided by your umbrella policy hinges on how you customize it. In most instances, umbrella insurance safeguards you against:

  • Injuries you may cause in a car accident
  • Injuries sustained by someone on your property
  • Property damage resulting from accidents you're involved in
  • Property damage caused by your pet
  • Property damage attributable to a dependent or child
  • Attorney fees and other legal costs

While your existing insurance may offer some protection, an umbrella policy goes further, often at a lower cost than raising the limits on your current policy. Moreover, umbrella insurance is usually portable, allowing it to accompany you wherever you travel.

As the specifics of umbrella insurance policies can vary, contingent on insurance companies and your requirements, it's advisable to engage with a qualified insurance agent from our firm. They are well-equipped to delve into the advantages, limitations, and coverage options offered by each carrier they represent.

Is it true that only individuals with substantial assets are the ones who require umbrella insurance?

Umbrella insurance can benefit anyone who has a job and relies on their income. Consider this scenario: What if someone delivered to your home slipped on a sidewalk made wet by your sprinkler system and suffered severe head injuries? They would likely sue you.

While your homeowner's insurance would step in and cover costs up to its maximum limits, imagine if the jury ruled that you were responsible for an additional $500,000 beyond your homeowner's policy limits.

Now, ask yourself: How long would it take to repay such a substantial amount with your regular weekly paycheck?

Umbrella insurance covers the portion that exceeds your homeowner's insurance coverage, typically extending up to $5 million. This can spare you from a financial nightmare and cover the costs of hiring an attorney to guide you.

How much does an umbrella policy cost?

How much does an umbrella policy cost?

Compared to the level of protection it offers, umbrella insurance is quite budget-friendly, especially considering the low likelihood of ever needing to make a claim. Your cost will be influenced by:

  • The coverage amount you decide to acquire
  • The terms and conditions set by your insurance provider
  • Your risk profile and driving history

Additionally, you might be able to save even more money by obtaining umbrella insurance from the same insurer that handles your home and auto insurance – please consult with us to confirm the options available.

Do I Need Umbrella Insurance?

Are umbrella policies costly?

Compared to the level of protection they offer, umbrella insurance is remarkably cost-effective. This is particularly true given the low probability of ever needing to file a claim. The specific cost of an umbrella policy depends on several factors, including:

Moreover, there's a possibility for additional savings if you opt for umbrella insurance from the same insurer that provides your home and auto insurance. Feel free to reach out to us for further clarification.

Now, let's revisit why you need Umbrella Insurance.

Many years ago, you set goals, devised a plan, worked diligently, and succeeded. Along the way, you accumulate assets that have provided you and your loved one's comfort and security.

You have every reason to take pride in your accomplishments and have taken steps to safeguard them with comprehensive insurance coverage.

However, now is the time to consider additional protection through an umbrella insurance policy. This policy offers coverage that extends beyond the limits of any individual insurance policy you may have.

For instance, consider the liability limits on your auto and home insurance policies, ranging from $300,000 to $500,000. While this may seem sufficient, what if a claim exceeds these policy limits? This is especially possible if you own valuable assets.

In such cases, your standard home or auto insurance policy may not provide adequate coverage for the plaintiff's demands. How would you pay the judgment or even defend yourself in a lawsuit? The consequences could include losing the fruits of your hard work and even a portion of your future earnings.

Yes, you can lose what you've worked so hard to achieve, and many people need to be made aware of this potential risk.

Free Umbrella Insurance Quote