Should You Have Umbrella Insurance?

Have you considered adding an umbrella insurance policy to your current insurance coverage? Today, lawsuits are everywhere. In instances of severe losses, whether it is a serious car accident or a damaging dog bite, lawyers are pursuing settlements larger than ever before. Your primary policies have a limit on liability insurance. If a severe loss occurs and your policy liability limit is exhausted, your assets would be next in line in terms of paying off a large settlement. Umbrella insurance was designed specifically to further protect those assets. After all, you don’t need to be a millionaire to be sued like one.

Umbrella insurance is referred to as “peace of mind” coverage. If a covered loss were to exhaust your policy liability limit, the umbrella policy would provide an additional $1 million in coverage (higher limits are available). Factors that increase your liability risk include items like recreational vehicles, a second home, or a business rental property. It’s likely that most families don’t have a second home, or a recreational vehicle to toy around on. However, most of us are exposed to common risks such as dogs (60 percent of families own a dog), guns, or what about those parties that often happen when parents are away from home? Do you have a young driver in the household? A recent study done by AT&T found that 97 percent of teens say it is dangerous to text and drive, yet 43 percent of them do it anyway. Would your current liability limit be enough to cover you if you or a young driver accidently hurt or even killed another driver while texting and driving?

The good news about adding an umbrella insurance policy is that the cost of doing so is inexpensive. A typical starting rate for a personal liability $1 million umbrella is approximately $125 for the year. The policy then blankets your home, auto, and any other liability exposures. You’ve worked hard to accumulate your assets; don’t let one accident take them away. Call us today if you have any questions about umbrella insurance and what it would cost to add one to your policy!