Consider that you have caused an accident and the other party sues you for an amount of $400,000. It is confirmed that you caused the injury, but your auto insurance is only covering you only for up to $300,000. Where will you find the other $100,000? You may have to dig into your savings or sell some assets to find the money.
However, you wouldn’t face this problem if you have a personal umbrella policy, because the policy would have covered you for that excess claim. This is just one type of protection provided by a personal umbrella policy.
Most people have some type of auto, personal or boat insurance policy, but those policies have a limit on how much they will pay. If the damage you caused is more than this limit, you are on your own. So, a personal umbrella policy is like extra liability insurance. It protects you from major lawsuits and claims and gives peace of mind. There are two types of coverages under a personal injury policy.
- It provides additional coverage when liability goes over the coverage provided by the first policy.
- Gives protection against claims that are not covered under your first policy such as libel, slander, false arrest and others.
What does an umbrella insurance policy cover?
An umbrella insurance policy covers property damage, injuries, certain types of lawsuits and personal liability. Personal liability covers bodily injuries, property damage and rental unit liability.
Who should get an umbrella insurance policy?
If you have assets and you want to protect those, an umbrella insurance policy is for you. Assets can include home equity, cash in bank accounts, investments. This policy can help you even if you have a few assets now, because it protects your future earning potential. What are you going to do if someone obtains a judgement against you that affects your future earnings? It can affect you badly.
So how much umbrella coverage do you need?
If you are not sure how much Florida umbrella insurance you need, don’t worry. Speak to your insurance agent frankly and he/she should answer all of the questions that you have. Here are some questions you may have to answer- How much assets do you own? Can you give an estimate of how many assets you might acquire in the future (for instance, inheritances)? Do you have a teenager in the family or perhaps an elderly person? How many properties do you have? What kind of recreational activities do you indulge in? Do you have a high social standing, do you own a company or are you frequently in the news?
Umbrella insurance policy rates are very affordable, a good payoff for the peace of mind they bring. In fact, insurance experts say that they offer the best value for customers in the industry. If you are living in Florida and you want to learn more about this extraordinary protection, please speak to an experienced insurance agent at Anderson & Associates today.
