Should I purchase an Umbrella Insurance Policy?

If you are ever sued,  your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal Umbrella Insurance Policy provides.

~~ Let’s say your neighbor slips and falls on your propety and successfully settles for 1.5 million dollars.  Your homeowners insurance tops out at $500.000.  Your Umbrella Insurance would cover the rest.

~~Another Example would be if your dog bites and seriously injures someone and you would be responsible for some extensive medical expenses.

~~Your teenager is at fault in a major car accident, harming several people and causing damage well in excess of your $300,000 car insurance coverage limits.

An Umbrella Insurance policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condominium or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal Umbrella Insurance policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an Umbrella liability policy for $1 million of additional coverage.

Give us a call at (636) 394-9070 or email us at info@davewenzel.com and we will answer all your questions about Umbrella Insurance

In Business To Protect Your Business