Do You Need Umbrella Insurance?

Umbrella insurance is a type of liability insurance that provides additional protection beyond the limits of your existing insurance policies.

​It's designed to protect you from major financial losses in the event that you are held liable for damages or injuries caused to others.

Here are 2 typical examples:

Example 1:  You got into an auto accident with another driver. The other driver sues you for $500,000 for damages and medical expenses and wins. Your auto insurance liability limit is $300,000. In this case, your umbrella insurance policy will provide the additional $200,000.

Example 2:  You were hosting a party at your home, and a guest slips and falls on your property. The medical expenses for his injuries come out to be $350,000.  The liability limit of your homeowners insurance policy is $300,000.  In this case, your umbrella insurance policy will cover the remaining $50,000.

Without an umbrella to cover the gap, your personal assets (home, investments, savings) are next in line to cover the remaining amount.
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Umbrella insurance can provide coverage for a wide range of incidents, including:

·         Bodily injury: If someone is injured on your property or as a result of your actions, umbrella insurance can provide additional coverage beyond the limits of your homeowners or auto insurance policy.
·         Property damage: If you cause damage to someone else's property, umbrella insurance can provide additional coverage beyond the limits of your homeowners or auto insurance policy.
·         Personal liability: Umbrella insurance can provide protection if you are sued for defamation, invasion of privacy, or other personal liability issues.
·         Advertising injury: Umbrella insurance can provide coverage for advertising-related injuries such as plagiarism, infringement of copyright and trademark.

If you don't have an umbrella policy and you have any personal assets, I encourage you to call your local insurance agent today for a quote.  The premium is well worth the peace of mind of avoiding a financial disaster.