There are many different types of insurance policies, all of which are designed to protect you and your assets when unexpected circumstances arise. When you have taken steps to purchase the type of insurance necessary to safeguard your family, it may seem like all of your bases are covered – that is, until you are hit with a liability judgment that exceeds the limits on your insurance policy. What then?
With umbrella insurance, you could breathe a sigh of relief. An umbrella policy is a catch-all coverage that acts as a back-up when you reach the maximum coverage on your primary insurance plan. Think of it as a way to protect yourself and your family when a major claim arises that could otherwise threaten your livelihood.
For example, imagine that you have an auto insurance policy with maximum liability limits of $300,000 per accident. One day during a downpour, your car slides out of control, slamming into a vehicle and severely injuring the driver. The medical bills alone nearly max out your liability limits, and the driver is also suing you for an additional 10 years of lost wages due to sudden disability. With auto insurance alone, you might be forced to liquidate your personal assets and savings accounts to foot the bill. If you had umbrella insurance, however, you might owe nothing out of pocket at all.
Umbrella Insurance Limits and Coverage
Umbrella insurance policies are typically sold with liability limits of $1 million or more. At approximately $13-20 per month for the first million dollars of coverage, they are often considered one of the best values in the insurance industry. Furthermore, the cost of adding additional coverage to your umbrella policy typically goes down with each additional million.
As an added benefit, umbrella insurance may also provide coverages that your auto, home, renters, or recreational insurance policies do not. This might include damages you caused to a rental property you stayed in while vacationing abroad or claims of slander or defamation of character following a conversation held during a party hosted at your home.
Keep in mind, umbrella insurance is not only for the rich. In the event of a major claim, everything you have worked for could be at risk. Your retirement savings, your child’s college fund, and your house could be on the line. Even if you have not accumulated a lot of assets, a large judgment could cause you to face wage garnishment on future earnings as well.
You cannot predict or control the accidents in your life. You also cannot go back in time to purchase additional liability coverage once you need it. At Harnish Insurance Group Agency, we work hard to ensure our customers are covered against the what-ifs in life. We can help you find umbrella insurance that helps cover your legal defense fees and also includes liability protection anywhere in the world. With umbrella insurance, you can protect your money and your assets from whatever life may throw your way.
