Umbrella Insurance Is Critical to Your Insurance Plan
If you were found negligent or liable for someone else’s bodily injury or death, would you have enough insurance to protect your assets?
Umbrella insurance is a stand-alone liability policy that provides an additional limit of liability over and above your underlying liability limits that are already on your homeowners and auto insurance policies.
Life can be unpredictable and as much as we plan for the best, sometimes the worst can happen. This is where umbrella insurance policies comes into play and provides you with additional coverage that goes above and beyond to protect your assets.
How to Use Personal Umbrella Insurance
To get a better sense of an umbrella policy and how it applies to real-life situations, it helps to think about it through the lens of a scenario.
For example, say you are found and held liable for causing a car accident involving multiple vehicles, and the cost to cover the damages and injuries is $850,000. However, the liability limits on your existing auto policy are only $300,000.
In this case, your insurance would pay only $300,000 for the entire accident, and you would be responsible for the remaining $550,000 out of your own pocket!
With an personal umbrella policy, however, you could extend your liability limits beyond the maximum provided by your underlying policies. In this case, an umbrella insurance policy would provide liability limits above the $300,000 limit of your auto policy, up to the limit you choose for your Umbrella policy (typically anywhere from $1 million up to $5 million in coverage).
In other words, with umbrella insurance coverage, you wouldn’t be left paying the remaining $550,000.
As it’s rare to be involved in the scenario above, here are a few other quick situations that would be better handled with an umbrella insurance policy:
- Your unleashed dog bites a neighbor’s child.
- A fire starts in your condo and spreads to other units.
- There’s an accident at your rental property.
How Much Does a Personal Umbrella Policy Cost?
One of the things that makes umbrella insurance so appealing, and an easy decision to make, is that the cost is generally very low.
Most insurance carriers offer coverage starting around $150 per year. The cost of your policy goes up based on the amount of cars and homes you need it to overlay, but the cost is generally pennies on the dollar, and all the risk is on the insurance company.
Even if your annual premium was $300, the insurance company is on the hook for at least $1,000,000. That is a tremendous value, and something that everyone should think about given the litigious nature of our society.
Get Started with a Commitment-Free Call with Our Umbrella Insurance Broker’s Today!
It only takes one accident to potentially bankrupt yourself. If you don’t have enough coverage, and in a world where medical expenses are sky rocketing, it only makes sense to think about purchasing personal umbrella insurance. Commercial umbrella coverage is just as important as personal; most business owners never expect to encounter a loss that exceeds the limits of their coverage.
As Colorado insurance specialists, we understand what it takes to properly insure homes and ensure you and your family are properly taken care of if disaster were ever to strike, whether your home is an apartment, condo, or townhouse!
According to insurance agent Savannah Martin at Centennial State Insurance Agency:
“We understand the unique needs of those located in wildfire areas and work with insurance companies to understand this as well. We can help you with your home, condo, auto, boat, motorcycle, RV, ATV, business, or life insurance needs. We pride ourselves in working with our clients and educating them on their insurance needs while providing excellent customer service.”
To get started speak with one of our personal umbrella insurance brokers for a quote, call our office, or click over to our quotes page and our team will shop the marketplace to see who offers the best coverage.
Keep in mind that most insurance carriers require that you have at least your auto insurance policy with them to qualify for their umbrella.
Stand-alone umbrella policies are available also for special situations.