Skip to content
Do you feel confident that your home, bank accounts, and the financial future of your family are protected in the event of a major accident or lawsuit? How comfortable are you with the personal liability coverage you currently have under your auto or homeowners insurance? Consider these and more when you think about purchasing an umbrella policy.
Umbrella Policy Coverage
Umbrella insurance policies are a type of personal liability insurance. That means that they can cover you even when your costs exceed the limits of your auto or homeowners insurance. Generally, umbrella policies are a safeguard to protect your assets if you are responsible for damages or a lawsuit that is more than your home, auto, business, boat or other individual insurance can cover.
The policy limits on umbrella policies are much higher than under your individual insurance policies and are typically $1 million or more.
These policies also offer personal liability beyond what your homeowners insurance can cover, and includes coverage for libel, slander, and false imprisonment.
Umbrella insurance doesn’t just cover the policyholder, it covers their entire immediate family or household. If your child is responsible for a major incident that results in an expensive claim or lawsuit, your umbrella is there to cover you.
Umbrella coverage is also extensive in range. You are covered worldwide unless you own homes or vehicles covered under other countries’ laws.
Umbrella Policy Benefits
Umbrella policies protect your assets. If the total value of your assets (checking and savings accounts, retirement and college savings and investment accounts, and home equity) is larger than the limits of your car or homeowners insurance liability coverage, you need an umbrella policy. You want enough liability coverage so that the insurance can pay for the lawsuit instead of you losing your assets to pay for damages.
These policies can pay for a lawsuit, which can be expensive to defend and cover. If you are more at risk of being sued, you should strongly consider securing an umbrella insurance policy.
How Much Umbrella Coverage Do You Need?
Add up the value of all of your assets. Compare that sum to the liability coverage limit of your auto or homeowners insurance policies. An asset value higher than your liability coverage limit means you should consider an umbrella policy. Policies range from $1 million to $10 million dollars in coverage.
To learn more about how umbrella coverage works and how it can protect your assets, contact Insured For Life today.
