What is umbrella insurance?
Life is unpredictable. Common situations like having a teenage driver, owning a pet, posting on social media, or having people visit your home carry a certain amount of risk. An unexpected incident can quickly turn into a lawsuit that costs you thousands of dollars, if not more.
You don’t have to be a millionaire to be sued like one. If something happens on your property or you are at fault, do you have enough coverage?
What does umbrella insurance cover?
An umbrella policy adds an extra $1 million (or more) of coverage above and beyond your existing policies. Many people only carry $100,000 of liability coverage. Although that sounds like a lot of money, it doesn’t go very far when a serious injury occurs. Medical bills, lost wages, and other bills can add up quickly.
That’s why umbrella insurance is so important. It gives you greater peace of mind and protects you against life’s unexpected surprises.
Do I need umbrella insurance?
Umbrella coverage isn’t just for high earners. It’s for everyone, especially if you:
- Own a home
- Have regular income
- Have retirement savings and other assets to protect
- Entertain guests in your home
- Have a teenage driver
- Host sleepovers, children’s parties, carpool children, or allow your teen to babysit
- Serve on a volunteer board or participate in your HOA
- Use social media
- Own rental properties
- Travel outside the U.S.
- Own a watercraft, RV, snowmobile, ATV, golf cart, or other “toy”
- Have pets
- Own firearms or other recreational weapons
But doesn’t my home or auto insurance policy cover a loss?
Unfortunately, home and auto insurance policies don’t protect you against every type of liability.
Consider these two scenarios:
1) You hear a juicy piece of gossip about one of your neighbors. You spill the tea to your closest friends at a BBQ and swear them to silence. Unfortunately, your neighbor finds out what you said. You get sued for slander, and it isn’t covered by your homeowners policy.
2) You go on a vacation to Europe. Instead of taking a tour, you decide to rent a car. You forget to drive on the other side of the road and cause a collision. Someone is injured, but your auto policy doesn’t cover you because you were outside of the U.S. and Canada.
In both of these instances, an umbrella policy may have provided coverage to protect you. Without an umbrella policy, your assets, savings, and even your future income could be at risk if you are held legally responsible for a claim.
Peace of mind costs less than you think.
For about the cost of a dollar a day, an umbrella policy offers an affordable way to prepare for the unpredictable. Schedule a risk assessment with your independent insurance agent to understand your coverage needs and find out if an umbrella policy is right for you.