An umbrella policy is an excess liability policy. Here’s just one example of how a personal umbrella policy works. If you’re at fault in an accident that injures another driver, your auto insurance may cover the other driver up to the limit you selected. Lets assume that limit is $250,000.
Now the question is: what happens if that limit is not enough to cover the other driver’s medical bills?
You may be responsible for the damages exceeding the $250,000. If sued, your personal assets could be at stake.
We hear so many people underestimate just how expensive an auto accident can be. Medical costs alone can easily exceed $100,000.00
With an umbrella policy you are creating another layer of protection for liability suits.
Its important to understand that an umbrella policy will kick in only after the underlying policy limits have been used.
We live in a very litigious society and even if a jury does not rule against you, its likely you’ll have to pay for a lawyer to defend yourself.
With an adequate umbrella policy, the money at risk can be your insurance company’s, not yours. Sometimes this means corporate lawyers will take on the case, and your defense costs can be covered as part of the umbrella policy. (note: not all policies are created equal. This article is an educational guideline and should not be viewed as a document that outlines what will or will not be covered under your umbrella policy. We are not claims adjusters, we are advisers that help you mitigate risk. Please contact your independent insurance broker for more information on what product best suits you)
The nice thing about umbrella policies is that the premiums are very affordable. We’ve written two million dollar policies for under $700 per year, one million dollar policies for less than $300
Another great thing about umbrella policies is that they are easy to set up. They can be added to your existing policies, often times with only one phone call. Inspire Insurance Services will take care of the rest. There’s typically no long applications or credit checks involved.
Like other insurance policies, an umbrella policy enables you to share the risk with others in an effort to protect you and your family. One catastrophic event can greatly alter, if not ruin people’s lives. With an umbrella policy you can sleep better at night knowing that if a tragedy should occur, you have an additional line of defense.
Client or not, we’re here to answer questions. 916-750-2489