Personal Umbrella Insurance
With personal umbrella insurance, you can be assured that you have protection even for the most costly calamities. While the sort of events that necessitate this type of added coverage may happen infrequently, when they do occur, they can be financially devastating: exposing your life savings, tangible assets, and even future earnings.
Personal umbrella insurance coverage offers additional protection above the liability coverage for your home, auto, and other personal insurance policies. Typically, these other policies will carry liability limits of $100,000 or $300,000 which may seem like a lot, but considering the high costs of a hospital stay or rehabilitation, this simply may be insufficient.
A short hospital stay can easily exceed $100,000 which may then be followed by long-term rehabilitation, and with a loss of income as well, your overall expenditure could easily exceed the ordinary liability limits of most personal insurance and home policies.
Personal umbrella insurance is not just intended to protect the ultra-wealthy but to cover all of us in the event of such a catastrophe. This type of insurance adds a layer of coverage of $1 million, $2 million, or more: enough to ensure that you will have what you need when you need it.
There are so many unforeseeable events, from a tragic car accident in which you are at fault to a seemingly ordinary mishap involving a guest at your home. Monetary damages can add up rapidly. Give serious consideration to adding umbrella insurance to your personal insurance coverage if the following applies to you:
- You own a home.
- You have teenage drivers.
- You have a significant income or future earnings potential.
- You own a business.
- You own a boat, RV, or motorcycle.
These are some of the many situations that warrant extra liability insurance protection, but there are countless more. Your Mountcastle agent can discuss these and other situations and help you determine the right amount of umbrella insurance for your needs.
Personal Umbrella Insurance FAQs
This type of insurance is designed to help protect you from large and potentially devastating judgments or liability claims. Personal Umbrella Insurance adds extra liability coverage over and above another insurance policy like auto or homeowner’s insurance.
This additional coverage could help you avoid possible expense incurred over the amount your existing insurance covers. Say, for example, you cause a car accident in which another driver is injured. What if that person is a highly paid professional such as a surgeon? If the accident you caused resulted in the individual being unable to work for several months, he could potentially sue you to cover the cost of the $1 million dollars he lost from being unable to work. If you had $250,000 in liability coverage on your auto policy, where would you come up with the remaining $750,000? An umbrella policy typically covers from $1 to $5 million and can provide the additional coverage you need so that you are not stuck in a situation like this.
Umbrella Insurance will typically cover property damage, personal injury, bodily injury, and landlord liability.
Umbrella Insurance typically will not cover personal belongings, business losses, intentional or criminal acts or omissions, and written or oral contracts.