What is Umbrella Insurance?
If your agent has ever asked you if you want to add an umbrella policy to your existing coverage and you had no idea what they were talking about this will help you understand. It’s simple; umbrella insurance is a type of insurance policy that helps take care of you when someone files legal claims against you. These types of claims wouldn’t be fully covered by your existing homeowner and auto insurance.
But does it matter how much income you earn? Yes and no.
Some recommendations say that you should have more than $1 million in umbrella coverage (depending on your assets or if you earn more than six figures). If you don’t earn that much, consider this: insurance for liability claims should be able to cover at least your net worth to make sure your assets can’t be taken away from you.
So in what kind of situations would you need umbrella insurance? Take these examples to help get a sense for why you may need it:
- You are the chaperone for your child’s overnight away sports game and a teammate gets hurt at a pit stop.
- You’re in the car with friends and somehow get in an accident with many serious injuries. Your auto insurance can only stretch so far before you find that the damages exceed your existing insurance plans.
- A friend may be dog sitting for you at your house; they get injured in your home, and blame the poor dog.
- You’re having a party out on your patio and someone stumbles on a stone tile that shifts from a rodent burrow. The person goes to the doctor and finds they have severely sprained their ankle.
Umbrella insurance can help you with any lawsuit that may arise from these situations. It doesn’t have to be related to your home or auto insurance but working closely with it may help you when you’re being sued. Umbrella insurance will also help you with the legal expenses you may incur.
Every client is unique so please talk to us today to find out how to get the best price and value on a personal umbrella insurance policy to protect your assets.
Avery Hall Insurance Group has Insurance Solutions for Today’s World. Call the location nearest you for a quote today.