Why You Need an Umbrella Insurance Policy
Do you have an umbrella insurance policy? Are you wondering if you actually need one?
Umbrella insurance can protect your assets and future wages in the event of a lawsuit.
- Do you own a house? A car? Have significant savings?
- Do you have a trampoline or a pool in your yard? Own a dog?
- Do you own rental properties?
- Do you coach kids’ sports?
These are all common reasons for purchasing umbrella insurance.
What is Umbrella Insurance?
Umbrella insurance is a secondary insurance that supplements your homeowners insurance, car insurance and renters insurance, and only pays out after the liability limits of those insurances have been exhausted.
Why do you need Umbrella Insurance?
In the event of a lawsuit, umbrella insurance will help you preserve your assets — but having a lot of assets isn’t the only reason to consider purchasing umbrella insurance. It can also help protect your future wages from potential garnishment should you be found at fault for an injury or property damage. Umbrella insurance could very well help you avoid a disastrous financial loss! And even if you aren’t found liable, umbrella insurance can help pay your legal fees.
How an Umbrella Insurance Policy Can Help Protect Your Assets
People have become more likely to sue in today’s society. If people view you as important or as having a positive reputation in your community, you may be considered a more attractive target for a lawsuit.
Let’s explore some of the scenarios where having umbrella insurance might be helpful to you.
We mentioned home and car ownership above. If someone were to get seriously hurt at your house or was injured severely in a car accident where you were deemed at fault, you could easily exceed the liability limits of your homeowners insurance or car insurance. Once you’ve exhausted those limits, umbrella insurance takes over.
Do you have a trampoline or a pool? Trampolines and pools are considered attractive nuisances. That means that you, as a homeowner, will likely be considered liable for an injury caused to a child who is trespassing on your property if that injury is caused by something that could attract children onto your property. So in addition to possible injuries to invited guests, you also need to consider injuries to those that may trespass on your property. Again, umbrella insurance kicks in after you’ve hit the limits on your homeowners insurance.
Many homeowner insurance claims are due to dog bites. If the person harmed by your dog needs reconstructive surgery and / or rehabilitation, you could be looking at a very large claim. But once you exceed the limits on your homeowners insurance, your umbrella insurance will kick in, helping protect your assets.
Umbrella insurance can also help cover you in the case of rental properties. A third party may choose to sue you because of damage your tenants cause to their property. Your tenant’s dog could bite someone. And don’t forget to change the locks for new rentals. You never know if old tenants have made extra keys. If a former resident burglarizes the property unit using a copy of his old key, you may also be found liable.
Many of us volunteer coach our childrens’ sports teams as well. You might be wondering how umbrella insurance could possibly come in handy there. Have you ever had a player get injured on the field? Driven a player to a game or practice? Accidents happen. Let’s not forget that there are occasionally accusations made by players against coaches. If you have to defend yourself against a claim made by a player’s family, umbrella insurance could prove to be very helpful!
Another scenario that is worth mentioning is in regards to what you say or write. If you leave a negative online review or write an unflattering comment about someone on Facebook, that company or person may choose to sue you for slander or libel. Should you lose the lawsuit, an umbrella policy can help protect your assets.
There are also a couple of scenarios where an umbrella policy won’t cover you that you should be aware of. If you own a business, you’ll need a separate umbrella insurance policy for that. Your personal umbrella coverage won’t help you there. It won’t cover you if you commit a crime either.
At Nicholas / Tobin Insurance in New Milford, Connecticut, we can advise you as to whether or not you should consider having umbrella insurance as a supplement to your homeowners insurance, car insurance, and even renters insurance!
How much do Umbrella Insurance Policies cost?
You’ll be surprised at how affordable umbrella policies are. Prices vary, but to add a million more in yearly coverage, you’re probably looking at a few hundred dollars. However, depending on your assets, you may want a higher limit on your coverage. That’s a discussion you should have with your insurance professional at Nicholas / Tobin Insurance.
Having an umbrella policy makes sense in most cases. An umbrella insurance policy can help give you peace of mind — and make what could be a devastating financial loss much less catastrophic! Let our dedicated team at Nicholas / Tobin Insurance advise you as to whether or not you should consider having umbrella insurance as a supplement to your homeowners insurance, car insurance, and even renters insurance!
Nicholas / Tobin Insurance, located in New Milford, Connecticut, provides its clients the highest quality insurance products and services available today to protect them, their families, and businesses. We offer homeowners insurance, renter’s insurance, car insurance, business insurance, travel insurance and more! Our commitment to service means our team of licensed insurance professionals is here to help with simple policy questions, consult with you to determine appropriate coverages and be available 24/7 when trouble strikes, and you need assistance managing through the claim process.
