One of the most important decisions you can make is whether to purchase umbrella insurance. Umbrella insurance
“Aka excess liability insurance” provides protection for your personal assets in case something unforeseen happens and you’re liable for financial damages. This blog post will discuss why it’s a good idea to invest in this type of coverage, as well as some other considerations that should be made before purchasing umbrella insurance.
What is umbrella insurance?
Umbrella insurance is a type of liability coverage that “tops off” your current auto, home, and other types of personal policies. This means that excess liability insurance extends protection above the limits provided by these existing policies to provide an additional layer of financial security from claims made against you for bodily injury or property damage (e.g., if another person gets into a car accident because they were driving too fast and hits you, umbrella insurance would cover any costs above what your auto policy provides).
To provide better understanding of excess liability insurance, here are some more points to consider:
– umbrella insurance provides an extra layer of protection for your personal assets, such as home and car if something unforeseen happens.
– umbrella insurance can be a clever idea to invest in if you have extensive assets or are at high risk of being sued (e.g., professional athletes).
– umbrella policies typically have a higher premium than standard liability policies.
– umbrella insurance is not required by law, but it may be taken into consideration in the event of lawsuits that arise because excess liability insurance can help protect you from financial damages when your other types of coverage max out; and
What is the average cost of a personal umbrella policy?
Umbrella insurance can be less expensive than standard liability policies. The average umbrella policy costs $150-$300 per year, but it is important to consider the value of your assets before purchasing excess liability insurance because this type of coverage will only protect you up to a certain amount – usually between $250,000 and $500,000 for most states.
How does an umbrella cover your home and cars?
Umbrella insurance is usually sold as a separate policy from your existing auto and home policies. If you have umbrella coverage, it will extend protection to assets that are not listed under your other types of insurances (e.g., excess liability insurance would cover an accident involving damage to someone else’s property if you were at fault).
For this reason, umbrella insurance is always purchased in addition to standard auto and home policies. However, umbrella coverage can also be added onto existing liability policies if your insurer offers this option (e.g., you may have the ability to attach an umbrella policy on top of a current homeowner’s or renter’s insurance).
A critical point to consider when purchasing excess liability insurance is that umbrella policies are only relevant if you have assets to protect. So, it’s important to make sure your umbrella policy has a high enough limit relative to the value of your personal property (e.g., umbrella coverage on a $500k home would not be as valuable as an umbrella policy attached to a $400k home).
If you want to discuss options for umbrella insurance, please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:00 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.