How Do I Choose the Right Umbrella Limit?
What is an Umbrella Liability Policy?
An Umbrella policy provides excess liability insurance over and above your standard underlying policies. This will protect you and your assets from big-ticket lawsuit judgments against you.
Just as an umbrella shields you from the rain, an umbrella policy protects you from a downpour. That worst case scenario where you could lose everything in a lawsuit. Even if your assets are few, an umbrella policy will protect your income. In settlements, wages can be garnished up to 10 years.
In addition to extending the limits of your auto and home policies and protecting your income, an umbrella policy will also cover personal injury claims, including false arrest, libel, and wrongful eviction, which are typically excluded by those underlying policies.
Who Needs an Umbrella Policy?
At UIS Insurance & Investments, 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. Some common ones are having a teenage driver, owning a swimming pool/ trampoline or entertaining frequently.
How Much Coverage Do I Need?
This is a hard question to answer. You’ll want to take into consideration not only your total personal assets but also your potential personal risks. Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you and your family.
This brings us to our last topic.
How much does the Coverage Cost?
An umbrella policy is usually sold with a Minimum of $ 1,000,000 in coverage, although, insurance companies offer these policies in increments of $1,000,000, up to $5,000,000 and sometimes even $10,000,000.
Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risks factors, a $1,000,000 umbrella policy typically costs less than $300 annually. Premiums go up an additional $50 – $75 for each million thereafter.
Why put your nest egg, retirement savings and other hard-earned assets at risk?
An Umbrella policy is an affordable layer of protection typically starting with $1,000,000 in coverage, with additional coverage available if your financial situation changes.
Don’t wait for a rainy day to find out you need the additional protection a personal umbrella liability policy can provide ….
Contact UIS Insurance & Investments today to get your Umbrella Policy.