Insurance has long been an important part of asset protection, and umbrella insurance is no different. In fact, it could be one of the most affordable types of asset protection available. Costing around $200 for a $1 million policy, umbrella insurance is affordable enough for any budget. It is also one of the most under-purchased forms of coverage in the U.S.
Without It; many people leave their income and assets vulnerable to major lawsuits that could wipe out everything they own. If you do not have umbrella insurance, continue reading to learn how this important coverage could help safeguard you against financial ruin.
Understanding Umbrella Insurance
Umbrella insurance is extra liability protection that supplements the liability coverage you already have on your home, auto, renters, condo, boat, RV, and ATV insurance policies. It covers a broad range of liabilities, giving you a financial safety net in many different types of scenarios. To qualify for an umbrella policy, most carriers require a minimum amount of liability coverage on your home and auto insurance policies:
- $300,000 or $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability OR
- $300,000 combined single limit (CSL)
These primary types of coverage will pay damage claims first (when applicable). Once your primary coverage is exhausted, your umbrella insurance picks up the remaining damages up to the limits of your policy. In some cases, such as lawsuits accusing you of slander or false arrest, you may not have primary coverage. In those scenarios, a true umbrella insurance policy (not just ‘excess liability’) may offer primary coverage that pays your legal fees and any judgments brought against you.
Are You at Risk?
Assessing your risk is an important part of asset protection. Everyone can be sued, though some people are at higher risk than others. Talk with one of our agents for help identifying any potential risk factors you may have, such as:
- Driving a car
- Having a long commute
- Having a teen driver in your home
- Owning a dog
- Owning a swimming pool or trampoline
- Hosting parties or guests in your home
- Owning a rental property with tenants
- Traveling outside the country
An Inexpensive Way to Protect Your Future and Assets
Everyone has financial goals, whether it is a new boat, a child’s college education, or a comfortable retirement. Maybe you have already achieved your goals, or perhaps you are still working toward them. Wherever you fall on the financial spectrum, asset protection is a must. An umbrella policy can prevent litigation and liabilities from derailing your future.
A $1 million umbrella policy is very affordable and typically becomes even more affordable with each additional million added to the policy. But the team here at Homewood Insurance Agency does not stop there. We aim to capture the most savings possible for our clients by shopping and comparing quotes from multiple insurers.
As an independent agency, we work for our clients -not the insurance company. We can also identify possible discounts when available, such as lower rates when you purchase your homeowners and umbrella insurance from the same carrier. Contact us today for more information and to request your free quotes.
When claims rise against you, who will be there to stand between you and your liability?
