If you are found to be legally responsible for injuring someone or damaging their property, without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket. Standard liability insurance generally includes homeowners, renters, auto and watercraft policies.
Like an umbrella that protects you from the rain, a personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is exhausted.
Do I need Umbrella Liability Insurance?
Unfortunately, accidents happen — and it’s not uncommon for jury awards and out-of court settlements to run into the millions of dollars. While it’s difficult to pinpoint the monetary consequences of the risks you and your family take each day, are you certain your current liability insurance offers you enough protection?
For example, what if:
- Your teenager runs a stop sign, causing a serious accident?
- A deliveryman falls on your sidewalk and is seriously injured?
- A guest is injured by your family dog?
If damages are found to be more than what your standard liability insurance will cover your umbrella liability policy would kick in and could cover the difference.
How much Umbrella Insurance do I need?
You’ll want to consider not only your total personal assets but also your potential personal risks. For example, do you operate a business in your home and have employees and clients in your home on a regular basis? Does your profession or the location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you. Coverages start at $1 million, and go as high as $5 million. When considering the value of the umbrella policy, discuss your personal needs with your CMB Insurance Brokers representative.
How much does Umbrella Insurance cost?
Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets or your credit rating, a $1 million umbrella policy typically costs less than $300 annually. Costs go up an additional $50-$75 for each million above that.
Make sure to set aside some time each year to review your policy and ensure that the limits and coverage you have selected are right for you. Evaluate your needs, then make sure to read the entire policy—especially the exclusions—to guarantee that you are covered in every situation that is necessary for your lifestyle. If you have questions about your umbrella insurance policy, contact CMB Insurance Brokers today!