What is an Umbrella Policy and Do You Need One?
Daily life can be full of uncertainty. Accidents happen and things can go wrong in an instant. You want the security of knowing that when the unexpected happens, you have safeguards in place to protect you financially. Personal umbrella insurance provides an extra layer of liability coverage* designed to help safeguard you from potentially devastating claims and lawsuits.
For example, let’s say your auto insurance policy has $250,000 in liability coverage, but you are in an accident where an individual has suffered severe injuries requiring hospitalization and you’re found to be at fault. Medical expenses can quickly escalate and when you factor in compensation for pain and suffering, loss of earnings and future care, you may find your liability limits aren’t sufficient for the damages caused. If a suit was filed and a jury awarded the injured parties more than your policy limits, your savings and equity in your home could be at risk.
No one wants to find themselves in this situation. But how do you prepare for it? Umbrella insurance can provide the coverage needed for these losses.
What is Umbrella Insurance?
That’s where umbrella insurance comes in. An umbrella policy provides $1 million to $5 million in additional liability coverage. While the coverage is optional, it may protect you in the instance of an unfortunate accident.
What other scenarios would an Umbrella policy cover?
- Your dog accidentally injures your neighbor’s child
- Your mail carrier trips over a crack in your driveway, resulting in injury and disability
- An overgrown tree in your yard crashes through your neighbor’s roof
When does an Umbrella policy activate?
Umbrella Insurance activates when damages from a covered claim exceed the limits in the underlying policy — everything from a lawsuit resulting from your dog biting the mailman to critical care for a driver you injure in an auto accident who is hospitalized for months.
Don’t sacrifice peace of mind and protection over the possibility of a split-second accident that could result in a lifetime of financial stress. Speak to your agent today about adding Umbrella Insurance coverage to your policy.
*Not all coverages may be available in all states.