October 4, 2017

Umbrella Insurance: Do You Need It?

It’s a rainy day – everything seems to be going wrong. You reach into your briefcase or purse and guess what is there for you? Your umbrella – it’s there to protect you from the rain and chaos outside. Just like an umbrella protects you from the elements, an Umbrella policy can protect you from exposure or claims that are greater than the liability limit on your home, auto or business policies.

For example, your auto limit of liability is $300,000 and you rear-ended another vehicle. The individual decides to sue you for $500,000 of damage – your Umbrella policy could cover the excess. If you did not have an Umbrella policy, you could have to reconcile the balance with your personal assets. You have worked hard to own a home, a vehicle and other personal property – why put that at risk?

Umbrella policies are usually written with a $1,000,000 liability limit, however, higher limits may be available based on eligibility. They are very affordable and can cost as little as $20-$30 per month, according to the Insurance Information Institute. If you have questions about Umbrella policies, contact your insurance agent.

This summary is for general informational use only and may not include all relevant information.