Making sure all your assets are protected?
Umbrella liability is often an overlooked policy. It tends to be one of the most important policies in the event you are liable or get sued. Cost wise it is a bargain for the amount of coverage you receive vs the premium. It helps protect all your assets in case you are found liable.
An umbrella policy provides coverage for you in case you are found to be liable. In addition to paying out the potential judgment against you, it can also pay for your defense costs.
“I’ll never get sued or be found liable.” Is that a chance you are willing to take? Recent years have shown our society being suit happy for the craziest things. You drive, have kids or pets, run a business, or numerous other thoughts you can have a reason for needing an Umbrella Liability policy.
The term “umbrella” just means it covers all policies listed under it. Extends coverage to your home, auto, recreational vehicle, boats, and other policies. Simply list these policies under the umbrella and when those liability limits are used up or exhausted the umbrella policy comes in for additional up to its limits.
Umbrella policies are usually written in million-dollar increments. A $1MM policy can start at around $200 per year.
Umbrella Claim Example:
You’re in an auto accident and you are found liable. You caused the accident. The person you hit has $500,000 worth of medical bills. Your auto insurance has a $250,000 bottle injury per person.
Your auto insurance pays out its maximum coverage of $250,000. Where does the other $250,000 come from? NO umbrella policy, it will come out of your pocket or in the sale of your assets. YES umbrella policy, will cover the extra cost up to its limits. In this example, it will cover the extra $250,000 if you have a $1MM policy.
Let’s change our claim example a bit: You’re in an auto accident and you are found liable. You caused the accident. The person you hit died. Your auto insurance has a $250,000 bottle injury per person.
Your auto insurance pays out its maximum coverage of $250,000. But what’s the potential payout amount in case of death? How much would you sue someone if a family member died? $1MM, $2MM, or more. If you have an umbrella policy in place the judgment and defense costs can be covered up to policy limits.
Your umbrella policy is designed to protect all your assets. Not just your home and auto. It helps you protect your financial wealth, retirement, and income. You work hard to collect and build your wealth and your umbrella makes sure a simple accident doesn’t take it all away.
Held Insurance Agency is a Trusted Choice Independent Insurance Agency. Located in Mount Prospect, IL, and services all of Illinois and Wisconsin. We can help you evaluate what policy fits your needs. Contact us to learn more or request a quote.