Nearly everyone has some degree of liability coverage – usually in the form of auto insurance and either homeowners, renters, or condo insurance. Unfortunately, these types of coverage alone still leave gaps in your personal liability protection. These gaps could be making you vulnerable to risks that could threaten your income, your assets, and the financial stability of your future. Umbrella insurance provides a broad, extra layer of protection that helps shield you from financial liabilities.
What is Your Liability Risk?
Every adult has some degree of liability risk, even if you lead a relatively ‘low-risk’ lifestyle. In today’s litigious society, you can be sued for nearly anything, from disparaging comments you make on social media to an injury caused by a guest tripping over a water hose in your front yard. Some factors can increase your risk of being sued, such as:
- Commuting to work or school
- Owning a swimming pool
- Having a teen driver in your home
- Having a dog
- Owning a rental property
Today’s lawsuits can result in judgments of millions of dollars. If a judgment against you exceeds the limits on your primary liability coverage, you could be on the hook for any remaining damages. In other words, a million-dollar auto accident lawsuit could leave you with a bill for hundreds of thousands of dollars even after your car insurance has reached its limit. Without additional liability protection, a victim can pursue you for the remaining damages, going after your personal savings accounts, income, physical assets, and future wages or inheritance.
Minimizing Your Risk Exposure with Umbrella Insurance
While you may not be able to prevent all accidents from happening, there are steps you can take to minimize your risk exposure. You should start by increasing the liability limits on your home and auto insurance to:
- $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability OR
- $500,000 combined single limit (CSL)
Then, talk to an independent agent here at Reis Insurance about adding umbrella insurance to your insurance portfolio. Umbrella insurance is supplemental liability protection that kicks in once the limits on your primary liability coverage have been exhausted. Most umbrella insurance issuers will require you to maintain high limits of homeowners and auto liability like the ones listed above to qualify for coverage.
Unlike ‘excess liability coverage,’ which merely extends the limits on the liability protection you already have, umbrella insurance also broadens your coverage to include liabilities you might otherwise not have coverage for. Examples include damages caused by accusations of libel, slander, false arrest, and damages you cause while traveling outside the U.S.
Shopping for Umbrella Insurance
If you are considering umbrella insurance, talk to an independent agent at Reis Insurance today. Our knowledgeable agents can help you assess your personal liability exposure and determine how much coverage you might need to mitigate your risks. We offer umbrella policies starting at around $200 or less for $1 million in coverage, with additional coverage available as necessary. We can also show you how to save by purchasing your umbrella and homeowners insurance from the same carrier. Call us today for your free quotes. We look forward to serving you soon.
Have you considered how much YOU could lose in a lawsuit?