Finding out how much insurance you need and what kind can be a daunting prospect. If you’ve ever purchased homeowners insurance, you may have been asked if you want an umbrella policy as part of your insurance coverage. To get the best possible coverage and protect yourself from any unforeseen circumstances not covered by a regular policy, it may be necessary to add additional liability coverage in the form of an umbrella policy to your auto and home insurance. policies to protect you and your family.

This is why.

Lawsuit Protection

Kiplinger recommends that you have an umbrella policy of at least $1 million to provide liability coverage that extends beyond your auto and homeowners insurance policies, even if you have less than $1 million in assets. If you are ever sued by someone and you don’t have this blanket policy, you could be responsible for paying legal fees on current and future assets. Even if you ultimately win the case, the legal fees will affect the settlement because they add up so quickly. It’s wise to get liability insurance limits that total as much as your net worth, more if you can afford it. This additional lawsuit coverage will take care of defense costs as well as liability coverage for lawsuits not included in your auto or home insurance. In a broader sense, umbrella policies provide coverage beyond your normal coverage and offer:

Property Damage Liability

Slander/defamation

Bodily Injury Liability

Legal fees and defense

you never know…

It is impossible to know if, when and who you will injure in the future, whether through a car accident or some other scenario. Just think of this possible example: you insult a professional athlete, a CEO, or a doctor. They may not be able to work for 10 years because of their injuries. You would be responsible for paying his lost wages, medical bills, and compensation for pain and suffering, and lost wages alone start at $3 million and go up from there, says Bankrate. It’s better to buy an umbrella policy now, with at least $1 million in coverage, than to pocket the bag later. If something happens and you don’t have an umbrella policy, it’s too late to add one.

peace of mind

If you’re worried about losing income and assets in a potential lawsuit, you need an umbrella policy. Considered a wise purchase in the insurance industry, this is one of those things that isn’t initially very exciting to buy like a new car or a vacation, but gives you immeasurable peace of mind knowing that if you have to use it, it’s there and it will protect you. . Plan to pay $150 to $200 for the first $1 million of coverage, then about $100 for every $1 million you add. Want to learn more about general insurance policies? Contact us today to speak with a representative and learn how it can benefit you!