You want to customize your insurance coverage? We got you!
Learn more about what umbrella insurance is and why you should consider it.
Nowadays, most Americans are used to having lots of options.
We curate our social media feeds. Our iPhones come in different colors. Burger King even created a whole business platform around the idea of having things “your way.”
With umbrella insurance, this idea extends to insurance as well!
What Is Umbrella Insurance?
Umbrella insurance extends the liability coverage you already have on primary policies like your home, auto, business, condo, renters, or watercraft policy.
Since it is a type of liability insurance, it’s worth mentioning that umbrella insurance doesn’t protect your own property. Rather, it covers you in the event that you accidentally cause loss, damage, or injury to someone else.
Umbrella insurance covers you in two ways.
The first way is by effectively increasing your coverage limit. For example, if your homeowners policy comes with a $300,000 policy limit, you can get an umbrella policy with a $1 million limit for a total of $1.3 million in coverage.
The second way is by covering claims that your existing policy doesn’t. For example, allegations of libel or slander aren’t covered under your homeowners policy unless you have a special endorsement.
You can get this coverage from certain umbrella insurance policies, too. Umbrella insurance can offer “drop-down coverages,” meaning they don’t require a primary policy to be in place for certain specific things.
What Does It Cover?
Umbrella insurance is designed to protect the policyholder as well as their family/household. Anyone who benefits from a liability policy should consider umbrella insurance.
Without liability coverage (or enough of it), you would be responsible for:
- Repairing or replacing damaged property
- Medical bills for the third party’s injuries
- Attorney and court fees in the event you are sued (including any settlements or judgments)
As with any insurance policy, your carrier has the right to list exclusions in your policy (i.e. claims that are not covered). This typically includes intentional injuries or highly risky acts.
How Much Does Umbrella Insurance Cost?
It is impossible for any blog post to give you an accurate quote for any type of insurance policy, as there are so many individual factors that go into determining your premiums.
That being said, it is possible to find umbrella insurance at a highly affordable rate. According to the Insurance Information Institute, an umbrella policy with a $1 million limit costs an average of $150-300 a year.
Our advice? Never select insurance policies based on price alone!
Buying insurance coverage isn’t like going grocery shopping—there are no such things as coupons or “loss leaders” you can take advantage of to get a great deal. When it comes to insurance coverage, you truly get what you pay for.
We always advise our clients to get the coverage that they truly need and as much of it as they can afford. An independent insurance agent will be able to identify the areas of your life or business that have the most risk and can find the policy (or policies) that fit your budget.
Why Do I Need Umbrella Insurance?
With ever-increasing medical and legal costs—and in our litigious society—liability coverage is a must. No one ever knows when an accident will strike (that’s why you buy insurance in the first place) and the financial consequences of a lawsuit can be devastating.
So, you understand the need for liability coverage, but you already have it on your existing policy. Why would you need more?
Because most people don’t have nearly enough.
Here in Florida, drivers are only required to carry $10,000 of property damage liability coverage on their auto insurance policies. If you accidentally hit someone else’s car, how fast do you think that limit will be reached?
For home insurance, your liability limit may be closer to $300,000, which sounds like a lot. However, consider the cost of paying an attorney to represent you in the event of a lawsuit. If the neighbor’s toddler wanders into your yard and falls into your pool, you’ll quickly find that your coverage limit is a drop in the bucket.
If your actions or negligence cause harm to a third party, you’re responsible for anything that goes beyond your coverage limit. Don’t have that kind of money? They can garnish your wages for as long as it takes to pay back every penny.
Umbrella insurance gives you a lot more wiggle room.
Looking Out For You
Your insurance policy is only as good as the amount of coverage you’re getting. And if you’ve coasted along for years with only the standard coverage limit, you simply don’t have enough protection!
Extending your coverage with umbrella insurance is an easy (and relatively affordable) way to make sure that you and your assets are protected. But while umbrella insurance is definitely worth considering, it’s not the only type of insurance that matters.
Far from it!
The internet has made shopping for insurance much easier than in the past, but the DIY option isn’t always the best one. To ensure that you are properly protected against the risks that are the biggest threat to you, you need customized, one-on-one guidance from an expert.
Luckily, the agents at Harry Levine Insurance are here for you!
Because we’ve been one of Orlando’s premier insurance agencies for the last 40 years, we have the “inside scoop” on the policies available to you. And because we’re an independent agency, we can offer you more choices in a wider price range so you can find the right coverage for you.
Call today or fill out our online quote form to get started. We can’t wait to meet you!