You get a call from your teen driver saying he caused a three-car accident. Though everyone survived and your teen is okay, the other drivers and their passengers suffered major injuries and irreparable damages to their vehicles. Thank goodness for great auto insurance, right? The only problem is that the high limits you chose for your auto liability still fall short of what you need to cover the victims’ medical bills, lost wages, and pain and suffering. Not to mention, you are stuck with your own legal fees and defense costs.
Once the limits on your auto insurance are exhausted, you are still on the hook for hundreds of thousands of dollars in liability expenses that will be paid through liquidation of your assets or even garnishment of your future income.
Here at Smartmove Insurance, we know how devastating a single accident can be for a family that is working hard to save for the future. Everything you have and are working toward could be wiped out in an instant if your liability insurance falls short of your needs. That is why we recommend umbrella insurance as a backup to your primary liability coverage.
This additional coverage extends and broadens your liability coverage, giving you a safety net that helps protect against financial disaster.
Understanding Umbrella Insurance
Umbrella insurance is coverage that is purchased in addition to your primary home and auto liability insurance. It protects you against major liability losses caused by things like property damage, major injuries, disabilities, and accidental death. Unlike ‘excess liability coverage,’ which simply extends the limits on your existing policies, umbrella insurance also provides additional protections that may not be included under your standard coverage. Examples include slander, libel, false arrest, and even damages you cause when traveling abroad.
Umbrella insurance is typically purchased in $1 million increments. The first million can often be purchased for less than $200 per year, with each additional million often costing less than half of the first. Though already very affordable, we here at Smartmove can help clients find additional savings by purchasing umbrella and homeowners insurance from the same carrier.
Who Needs Umbrella Insurance?
Nearly everyone can benefit from this important coverage – not just the wealthy. Judgments made against you can follow you for years to come in the form of wage garnishments. Any future income or inheritance could be at risk if you are liable for a major accident. Not to mention, any current savings you may have, such as for a child’s college education, might be in jeopardy of liquidation without adequate coverage.
Since Umbrella insurance offers supplemental liability protection, insurers typically require a minimum amount of liability coverage on primary auto and home insurance policies.
Though every insurer is different, limit requirements are typically:
- $300,000 or $500,000 in homeowner liability
- $250,000/$500,000 auto bodily injury liability OR
- $300,000 combined single limit (CSL)
If you do not have umbrella insurance, there is no better time than now to get the security your family needs to protect your financial future. Contact an agent here at Smartmove Insurance for more information and to request your free quote.
Do you currently have umbrella insurance, or is your coverage limited to the liability on your home and auto policies?