Personal Umbrella Liability Insurance
The Basics of Personal Umbrella Liability Policies
If you are found to be legally responsible for injuring someone or damaging their property without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket. Standard liability insurance generally includes homeowners, renters, auto and watercraft policies. A personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is already consumed.
Who Needs an Umbrella Liability Policy?
You do! Contrary to popular belief, umbrella liability policies are not just for the wealthy. At NEWS Insurance Services, we recommend that everyone consider carrying an umbrella policy. If you engage in a high-risk activity or hobby that increases your odds of getting sue (such as having a teenage driver, owning a swimming pool or entertaining frequently), it is wise to supplement your insurance with a personal umbrella liability policy.
How Much Coverage Do I Need?
Take into consideration your total personal assets and your potential for personal risks when determining how much coverage you need. A wide range of factors, such as whether you have hired help, if you have teen drivers at home or if you operate your business out of your home, will determine how much coverage is appropriate for your circumstances. For example, do you operate a business in your home and have employees and clients to your home on a regular basis? Does your profession or location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you. Coverages start at $1 million and can go as high as $10 million. When considering the value of the umbrella policy, discuss your personal needs with NEWS Insurance Services.
How Much Does Coverage Cost?
Additional liability insurance is inexpensive when you compare to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets, your credit rating and more, a $1 million umbrella policy typically costs about a dollar per day. Costs go up an additional $50 to $75 for each million thereafter.
Why is a personal umbrella liability policy important?
It works to fill the gaps in your coverage and provides the following benefits:
- When litigation ensues, it’s typically for a large amount. If you get into a car accident and injure several people, you could be sued for millions of dollars; well beyond the limits of your automobile policy. You can also be held responsible if your dog bites someone, if your child injures another kid in a fight at school or if a handyman hurts himself at your home.
- Umbrella policies cover legal fees because the insurance company assumes the risk, not you.
- Coverage is inexpensive and easy to obtain. Just give us a call to add it to your current policy.
- You’ll have peace of mind knowing that it will cover you in case of a fluke occurrence.
Getting the Best Rate
It’s a good idea to source all your liability policies from the same insurance company; ask about our multi-policy discounts.