Do You Need Umbrella Insurance?
The average homeowners insurance covers liability claims up to $300,000 and auto insurance covers only up to $250,000 per person. Though having this financial protection is legally necessary, it’s not uncommon for lawsuits to leave individuals with nothing. In reality, the actual amounts awarded by the jury are in the millions of dollars.
With more than 15 million lawsuits filed in civil courts every year, it’s likely that you or someone you know, will experience a liability lawsuit at some point in life. Because carriers cover only a set amount, many individuals assume it will be enough to provide adequate financial protection in the event of a lawsuit.
If you are found financially responsible for the damages caused to another, everything you own is at risk if you don’t have enough insurance to cover their expenses. That’s why umbrella insurance is so important.
Umbrella Insurance provides supplemental coverage if you’re facing a lawsuit for injuries or property damage. This insurance initiates after the liability funds on your home insurance, car insurance, etc. are extinguished. Aside from adding an extra layer of financial security, umbrella insurance is a good idea for you if the following apply to you:
· You have a high net worth.
Calculate your net worth. Considering that you could be sued for everything you own, personal umbrella policies typically provide $1-$5 million worth of liability coverage.
· It’s not a stand-alone policy
Stand-alone policies are the opposite of broad coverage insurance policies. Instead they cover one specific risk, like an earthquake or tornado. Umbrella policies do not limit coverage to a particular risk – they’ll provide financial coverage for an array of incidents, though you’ll likely have to meet certain qualifications.
· Added Layer of Protection
It’s easy to forget that if a jury finds you’re legally responsible and awards the winning party millions of dollars, they won’t just take your money. They can take your home, your car, and much more. An umbrella policy protects these vulnerable assets.
· Wide-range Coverage
Umbrella policies aren’t limited to just home and auto insurance. They can provide additional coverage on insured motorcycles, boats, ATVs, golf carts, motorhomes, and more. While many carriers offer extended coverage, be sure to confirm with your insurance company first.
· Coverage for everyone
For just $250 to $500 a year, you can buy increments of $1 to $2 million in liability coverage. This single policy provides enough coverage for any family member who resides in the household.
What it comes down to is this: if you ever face a liability lawsuit (and the chances aren’t slim) it’s better to be over-insured than under-insured. Protect your home, your family, and your finances with a reliable umbrella insurance policy.
To learn more about what umbrella insurance is, what it covers and why it would be a good idea for you, talk with a helpful agent at Taylor-Moore Agency today. As insurance leaders in the Northern Vermont and New Hampshire areas, Taylor-Moore Agency understands the risks involved in living in the Northeast. Let our experts develop an umbrella plan that works for your wants and needs.