Who really needs the extra level of protection provided by a personal umbrella policy? The answer is, you do.
An umbrella policy provides additional layers of liability protection beyond your current policy. If the liability limits are exhausted on your home, auto, or other underlying insurance policy, your umbrella insurance policy takes over and provides you with additional layers of protection.
The cost is minimal compared to the comfort of knowing you’re covered. As low as $10 a month in some cases, the annual premium for a $1 million umbrella may be less on an annual basis than a hour of your family attorney's time. Think of it as a retainer for legal defense in the worst case scenario you can imagine.
How much liability insurance is enough? In today’s society there really is no limit to what the negligent party can be held responsible for financially with regard to causing injury to others or their property.
The claim scenarios are endless, a car or boat accident, your dog bites a neighbor’s child, an accident on your rental property, a fire in your condo is spread to other units.
Think about this. The most common limit of insurance purchased on an auto policy today, limits bodily injury payment to any one person injured in an accident at $100,000. That’s above the Missouri state minimum and may be a responsible limit of insurance, but it would never be enough to pay for the medical expenses, care and rehabilitation of someone seriously injured in an auto accident. Those expenses could easily exceed $1,000,000.
If any of these things happened to you, there’s a good chance your current liability limits wouldn’t be adequate to protect your assets, or your future earnings.
The liability limits attached to policies covering your auto, home, boat, rental property or motorcycle are referred to as “underlying liability limits”. They need to be set to specific levels to qualify for umbrella coverage.
Once the underlying liability limits are exhausted on your home, auto, or other policy, your umbrella policy takes over and provides a second layer of protection of at least $1,000,000. Higher limits may also be available.
Talk with Bill White Insurance to determine the right amount of coverage for your needs.
A true umbrella insurance policy may also pay some claims not covered by your home, auto, or other underlying insurance. It’s important to make the distinction between a true umbrella policy, and an “excess policy” or “follow-form contract” used by some companies which simply extend the limits of your underlying policy without providing additional coverage benefits. The umbrella covers not just you, but your spouse or domestic partner, and all family members living in your household. A good policy should apply anywhere in the world, just in case you run into legal trouble while travelling abroad. Legal defense fees are typically included in addition to your limit of coverage.
The right coverage for you is unique. Talk to us today to find out how to protect yourself, your family, and your future with the right personal umbrella insurance for you.