Many believe that umbrella insurance policies are for the wealthy with million dollar homes, expensive jewelry and fancy cars. But, contrary to popular belief these policies are most important for those of us who are NOT independently wealthy. Your retirement funds, investments or savings could be significantly depleted or exhausted entirely should you find yourself involved in an expensive liability situation.
Home and auto insurance are considered by most of us think that basic liability coverage is enough. But most often an umbrella policy’s additional coverage is a wise investment. An umbrella policy will usually add an additional layer of insurance, usually $1 to $2 million dollars, to supplement your traditional auto and home insurance liability coverage.
Many people make the mistake of thinking that an umbrella policy is designed and intended for those people who are wealthy, earning more than most and who own very expensive property. But this is simply not the case. In the case of an auto accident or accident at your home the lawsuit that may result may very well exceed $300,000.
Although the vast majority of umbrella insurance claims are automobile related, the addition home liability coverage may prove a saving grace.
Consider how likely the following are likely scenarios that could result in a lawsuit:
- a guest falls down your stairs during a visit
- a child is seriously injured while jumping on the trampoline or swimming in your pool
- someone falls from the balcony of your home
- a service worker is injured while working at your home
There is even coverage for situations that you might not have thought would be covered that might be available with an umbrella policy such as:
- accidents while you are driving in a foreign country
- an accident while riding on a rented jet ski or boat while on vacation
- you are accused of slander/defamation of character while volunteering with a non-profit organization or while on a social networking site
All of this being said, the cost of a $1 million dollar umbrella policy is on the average around $200 annually. This certainly makes the cost of an umbrella policy a very reasonable price considering the peace of mind and security that the policy can offer!
If you would like more information on umbrella policies and explore what options might be available to you please get in touch with us.
We would be more than happy to give you further information and give you some free quotes!