What is Personal Umbrella Insurance?
Personal umbrella insurance offers extra coverage to your property and casualty policies that have coverage limits. Umbrella insurance is a second type of liability insurance that goes above and beyond the limits of your current homeowners or auto coverage. At a very little cost, umbrella policies can add more than one million dollars in liability protection.
With a personal umbrella insurance policy, you and your family will not have to worry about a thing in terms of liability. You and your assets will be protected in the event of a catastrophic claim that you are found responsible for and even lawsuits initiated against you.
How Do Umbrella Insurance Policies Work?
Umbrella Insurance can protect you from several financial burdens such as litigation arising from property damage or injuries, along with the associated legal defense costs. In most cases, an underlying liability policy must first be paid before the umbrella insurance kicks in. For example, an auto insurance policy provides the primary liability for a loss. Once the amount of money in the auto personal liability coverage is exhausted or maxed out, the umbrella insurance payment begins to take over the remainder.
Why Might You Need Personal Umbrella Insurance?
1. You Drive
You might already have a good insurance policy, and you might already have a track record of being a great driver. However, this is not the case for many drivers on the road, so even if you’re not the one to cause an accident, they still happen and can be a huge burden on your wellbeing in a No-Fault state like Florida.
According to recent estimates from the Insurance Research Council, one out of seven drivers is uninsured. Also, there is a large number of underinsured drivers that pay for the state minimum auto policy limits. If you get into an accident with an uninsured driver, your insurance and your policy will be responsible for making claims. However, if your primary auto policy limits are exhausted, you will have to pay all other expenses out of pocket. This is why having personal umbrella insurance can be a financial lifesaver in these times of distress.
Even if you are the most careful driver, studies show that the average driver will be in a car accident once every 18 years or so, which equates to about 4 car accidents in a lifetime. Due to Florida’s No-Fault law, you will be responsible for turning to your insurance policies for the claims and will be liable for all charges on your end. There is also the possibility that a lawsuit might come your way if you cause an accident, but if you have personal umbrella insurance, you will be far more prepared to cover the expenses.
2. You Interact With People
Nowadays, it is possible that anything documented that you say or do could land you in a legal disaster if you are not careful and smart about the way you act. If you have a lawsuit brought against you, the cost of defense alone could be thousands of dollars. Moreover, if you were to lose the lawsuit, the payment and settlement could harm your reputation and financial situation for life. Thankfully, by having a personal umbrella insurance policy, you are at least able to protect yourself from the financial harm, since these policies can cover over one million dollars.
3. You Own Property and Pets
Accidents happen, and any that happen in or on the premises of your home, you will be liable for. Furthermore, your pets can also be the cause of major liability issues. For example, if your dog accidentally bites someone, you will be responsible for any injuries, rehabilitation, loss of wages, and any court costs if a claim or suit is made against you.
Requirements for Umbrella Insurance
To start, there are several requirements set by each insurance company that must be met in order to acquire a personal umbrella policy. For instance, each policy will provide a minimum amount of liability required to qualify for the umbrella policy.
Normally, states require a minimum amount of liability for your primary policy. However, this amount might not meet the minimum amount to qualify for the umbrella policy. In this case, you would have to increase the liability limits in the primary policy to comply with the requirement of the umbrella policy. Also, some insurance companies require you to insure all of your properties with them before getting extra coverage with an umbrella policy.
Personal umbrella insurance is relatively inexpensive and can save you a lot of money if you were ever in a big accident or liable for other claims made against you or your family. At the Webb Insurance Group, we can provide you with a quote at the lowest rate that will offer you the personal umbrella insurance policy that you need and will fully protect you and your assets.