You cannot control when it rains, but you can always carry an umbrella. That’s the way we feel about umbrella insurance, an important, but often underused type of insurance that provides extended liability when you need it the most. This affordable type of coverage comes with high limits and many different ways of using it; and contrary to popular belief, it is not designed only for the rich. In fact, you probably need umbrella insurance as long as you have the ability to draw an income.
What is Umbrella Insurance?
Umbrella insurance is extra liability that pays for any damages you are responsible for once the limits on your home, auto, or other liability insurance are exceeded. It typically carries very high limits, usually starting at $1 million and increasing in $1 million increments. In most cases, each additional increment is more affordable than the last, making it easy and inexpensive to protect high-value income and assets against expensive litigation.
Typically, umbrella insurance covers a wide range of liability, including some that are not covered under other standard insurance policies. In addition to extending your liability protection from existing insurance policies, umbrella insurance can protect you against monetary liability damages stemming from:
- Defamation of character
- False arrest
- Damages to overseas rentals
- Legal defense fees
Do I Need Umbrella Insurance?
Umbrella insurance can help protect you against financial ruin, and it is not intended only for the wealthy. We recommend that everyone have an umbrella insurance policy if they have significant savings, assets, or the ability to earn an income.
If you think you are unlikely to be the subject of a million-dollar lawsuit, consider this: More than four in five umbrella insurance claims are for financial liabilities stemming from car accidents. If you cause an accident that results in a fatality, or if you are responsible for a multiple-car pileup on the highway, the financial damages can quickly spiral out of control. Once the limits on your auto insurance are reached, you could be on the hook for any excess.
Imagine being left with a bill for $500,000. A court could order seizure of your personal assets, liquidation of your financial accounts, and even garnishment of your future income and wages for years to come. In an instance, you could watch your dreams of future financial security washed away without the right coverage.
What are your personal liability risks? Do you
- Drive a car
- Own a pool
- Host visitors in your home
- Have children or teen drivers?
- Have pets?
Keep in mind that you may be held financial liability for monetary damages stemming from accidents you did not cause directly. Perhaps a visitor fell down the stairs in your home or a pet bit someone on your lawn. Maybe your child caused injuries to another child at school or posted defamatory comments about someone on social media. In these scenarios, it pays to know you are covered against any possible financial fallout.
Request an Umbrella Insurance Quote
At Feivor Insurance, we only offer affordable and reliable umbrella insurance from Wisconsin insurers with a reputation for quality coverage. We can help you assess your personal liability risk and identify areas of possible vulnerability. We will assist you in choosing the limits on your umbrella policy and answer any questions you may have. For more information about umbrella insurance or to request a free quote, contact Anthony at Feivor Insurance today.