Home » Do I Need An Umbrella Insurance Policy?
October 13, 2020
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Do I Need An Umbrella Insurance Policy?

Person holding tiny umbrella in front of hurricane

If you have a net worth over $500,000, the answer is most likely a resounding, YES! You’ve earned it. Now you should protect it.

“I already have home and auto. Why do I need more coverage?”

It is true that if an accident occurs, resulting in damage or injury to another person involving your home or auto; your corresponding insurance would cover it.
After your policy limit is exhausted, however, you’re on the hook for the remaining damages.
For example, you hit a car driven by a young couple with kids in the backseat. You would owe for lost wages, medical bills, plus pain and suffering.
The lost wages could start at $1 million. Medical bills could easily be over $500,000, and compensation for pain and suffering alone can exhaust some policy limits.

Umbrella Insurance Provides Coverage Past Your Limits

An Umbrella Insurance Policy provides you with an additional $1 million or more of coverage. 

An umbrella Insurance policy kicks in when you reach the limit on your homeowners or auto policy. It covers other things, as well, such as libel and slander.

Umbrella Insurance allows you to extend your auto, boat, and homeowner’s insurance policies. So in the case of a catastrophic event, you don’t lose what you’ve worked so hard to achieve. 

This extra coverage also helps prevent your future wages from being garnished due to a considerable judgment against you.

How Do I Get An Umbrella Insurance Policy

Anyone concerned about losing income or assets in one massive lawsuit needs an umbrella policy.

Most insurers require minimum coverage amounts on your home and auto policies before they’ll provide an umbrella.

Once you qualify, an umbrella insurance policy is the absolute best insurance product to buy. 

For about $200 to $300 per year, you can obtain coverage up to a $1 million personal umbrella liability policy. 

Have more questions or want to see how you can qualify for an umbrella policy? Give us a call at 561-637-2424; our agents are happy to help you!

Examples of how an umbrella policy works

  • You have an at Fault Auto Accident
      $600,000 > Judgement & Legal Fees
    – $500,000 > Your Auto Coverage pays
      $100,000 > Remaining Balance
    – $100,000
     > Your $1,000,000 Umbrella kicks in
                 $0 > Amount left for you to pay

 

  • Your guest jumps in pool & injures their neck
      $800,000 > Judgement & Legal Fees
    – $300,000 > Your Homeowner’s Coverage pays: 

      $500,000 > Remaining Balance
    – $500,000 > Your $1,000,000 Umbrella kicks in

                 $0 > Amount left for you to pay: 

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