Umbrella Polices – What is it and why do i need it?
Umbrella Policies are the perfect way to keep you and your family fully protected. Much like a normal umbrella when your out in the rain it will cover anything that sits underneath it. Imagine the rain drops as the risks falling down at you and this as a way to keep you from getting hit with them. Just like the simple things like having a swimming pool or entertaining guests in your home can increase the chance that someone will get injured and sue you. To minimize your risk, consider a personal umbrella liability policy.
The Basics of Personal Umbrella Liability Policies
If you are found to be legally responsible for injuring someone or damaging their property without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket. Standard liability insurance generally includes homeowners, renters, auto and watercraft policies.
A personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage has reached its limit.
Who Needs an Umbrella Liability Policy?
At Bickle Insurance Services, we recommend that everyone should consider carrying an umbrella policy. If you engage in a high-risk activity or hobby that increases your odds of getting sued—such as having a teenage driver, owning a swimming pool or entertaining your friends and family a lot then it is wise to supplement your insurance with a personal umbrella liability policy.
Why is a personal umbrella liability policy important?
It works to fill the gaps in your coverage and provides the following benefits:
- When litigation ensues, it’s typically for a large amount. If you get into a car accident and injure several people, you could be sued for millions of dollars; well beyond the limits of your automobile policy. You can also be held responsible if your dog bites someone, if your child injures another kid in a fight at school or if a handyman hurts himself at your home.
- Umbrella policies cover legal fees because the insurance company assumes the risk, not you.
- Coverage is inexpensive and easy to obtain. Just give us a call to add it on to your current policy.
- You’ll have peace of mind knowing that you are covered in case of a fluke occurrence.
Still a little confused? This video is a great tool to help you better understand how the umbrella policy works.
How Much Coverage Do I Need?
You’ll want to take into consideration not only your total personal assets but also your potential personal risks. For example, do you operate a business in your home and have employees and clients to your home on a regular basis? Does your profession or location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you.
Coverage starts at $1 million, and can go as high as $10 million. When considering the value of the umbrella policy, discuss your personal needs with Bickle Insurance Services.
How Much Does Coverage Cost?
Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets, your credit rating and more, a $1 million umbrella policy typically costs about a dollar per day. Costs go up an additional $50 to $75 for each million thereafter. Protect Against Risks With an Umbrella Policy
In the event that someone is injured on your property and you are found legally responsible, you could be faced with a costly financial burden. In fact, without a personal umbrella liability insurance policy, any expenses beyond the limits of your standard policy are your responsibility. This applies to your homeowners, renters, automobile and watercraft insurance policies.
At Bickle Insurance we always want your best interest in mind. Chat with one of out agents to learn more about your current coverage options and how adding an umbrella policy could benefit you. Some even save money by adding this to their polices.