Whether you are living your dream or still working hard to achieve it, nothing can wreck your plans for the future like a major lawsuit. Though unlikely, being sued is a real possibility – especially in today’s litigious society.
The question is, what steps have you taken to protect yourself against possible liability? If you are like many people, you rely on your home and auto insurance to safeguard you against lawsuits; but what if your coverage is not enough? What if you are sued for more than your insurance policy will pay, leaving you with a bill? In these scenarios, umbrella insurance can pick up where your primary coverage leaves off, which could mean the difference of staying on track for the future and experiencing financial ruin.
What Does an Umbrella Cover?
Umbrella insurance is secondary liability coverage that kicks in once a judgment or liability exceeds the limits on your home or auto insurance. It typically covers everything your home and auto liability covers, plus more. Usually, an umbrella offers a minimum of $1 million in additional liability protection beyond the limits of your existing policies, although coverage of up to $5 million may be available. It can be used towards damages stemming from accidents you are liable for at your home, away from your home, and while operating a motor vehicle.
In addition, most true umbrella insurance policies will also provide coverage for slander, libel, and damages you cause while traveling abroad – none of which are typically covered by homeowners insurance.
Who Needs Umbrella Insurance?
Umbrella insurance is for anyone who:
- Has accumulated a high net worth
- Owns high-valued physical assets
- Generates a large income
- Expects to receive an inheritance or windfall
- Has the ability to earn a wage
The fact is nearly everyone needs umbrella insurance, but far too few invest in this important coverage. When push comes to shove, an unexpected lawsuit often results in many years of financial consequences that could have been avoided with a simple umbrella policy.
If you think you are unlikely to be sued, you could be grossly mistaken. Anyone can be sued, but many factors that are common to U.S. households could further increase your risk.
For example, you could be at an elevated risk of a lawsuit if you have a teenage driver in your home, as teens are at higher risk of causing serious or fatal car accidents. You could also be more likely to face a lawsuit if you own a swimming pool, have a dog, or drive a long commute.
Request an Umbrella Insurance Quote
You can request an umbrella insurance quote by contacting an independent agent here at Heinen Insurance. We can answer any questions you have about umbrella insurance and provide you with a risk assessment to determine how much additional liability coverage you might need. Umbrella policies are often available for as little as $200 per year, with additional savings sometimes available for people who purchase umbrella and homeowners insurance from the same carrier. Contact us today for more information and to request your quotes. We look forward to serving you soon.
What steps have you taken to protect yourself against major liability?