When you add an umbrella coverage to your current insurance policy you are extending your liability coverage. While it may not protect you from the rain, this umbrella fortunately will protect you from other elements. From fees that are beyond your policy limits to libel and lawyer fees, adding an umbrella policy is something that every insured individual should consider when deciding on their policy. You never know when an incident will occur, protect yourself ahead of time.
So what exactly is an umbrella policy you may be asking? An umbrella policy picks up where a homeowner, boat, or auto insurance policy leaves off. The policy essentially extends the liability limits on these policies. It covers you beyond that of your underlying coverage and can also broaden your coverage to protect you where you might not otherwise be covered. Typically umbrella policies will cover you from one million dollars in additional coverage up to five million dollars in additional coverage. Talk to our agents to find out what you qualify for based on your current policy and assets.
To give you a better understanding of an umbrella policy, we will use a car accident as an example. Let’s say you are involved in an accident and your bodily injury liability limit is $300,000. The accident is determined to be your fault and the driver in the other car had $500,000 in medical bills. In this scenario, instead of you personally being liable for the additional $200,000, your umbrella policy would come into play and cover it.
Contrary to popular belief, adding an umbrella policy may not be as expensive as you think. By purchasing an affordable umbrella policy upfront, you could protect yourself from thousands of dollars to millions of dollars in over-limit bills in the long run. When you are at fault for an accident, you never know when an involved individual could sue you. With an umbrella policy, you will also have your current and future wages protected in the case of a lawsuit.
Here are just a few of the ways an umbrella policy can protect you:
Bodily Injury Liability:
As stated in the example above, an umbrella policy could protect you from bodily injury liability if your regular policy limits were maxed out for an accident.
An umbrella policy could protect you from property damage liability if your regular policy limits were maxed out.
An umbrella policy protects carriers against a number of legal situations including slander, libel, and more. It will also help with legal and attorney fees if a lawsuit is in place.
An umbrella policy could help protect you against liability that you may be responsible for as a landlord, including if you were sued.
Our professional team of trusted agents at Jerry Heinen and Associates will let you know if an umbrella policy is something that would benefit you based on your personal scenario. Schedule an appointment or stop into our downtown Sheboygan office for more information.