Whether you own a home, rent an apartment, drive a car or even own a boat - you face a number of risks that could result in major lawsuits and steep legal fees.
Those settlements and fees could quickly extend beyond the limits of your standard insurance policy.
Because we’ve seen it happen more times than we’d like, we are ALWAYS educating our clients about the need to purchase an extra layer of coverage…
This extra layer of coverage is called an Umbrella Policy. It provides protection over and above all your personal risks that just come with owning things.
Before we get into the details of what an umbrella policy is, imagine these unlikely, but very possible scenarios:
You invite extended family over for a cookout. Unexpectedly, your dog attacks your sister’s toddler, resulting in a head injury from being knocked to the ground.
Commute to Work
You are commuting to work and glance at your phone to read a text message. Within seconds, you run a red light and cause a three-car accident- resulting in life-threatening injuries to some of the people involved.
Apartments & Power Cords
Your friend stops by your apartment to drop something off and trips over a power cord, falling down the stairs. He’s rushed to the ER and needs emergency surgery for a broken leg.
Friends at the Lakehouse
Family friends join you for paddle boating at your lakehouse. Their son, who is not wearing a life jacket, falls into the water and is life flighted to the nearest hospital after suffering serious injuries.
It’s tragic and unexpected incidents like these that could result in lawsuits and costly legal fees.
Which means, within minutes your entire savings, retirement plan, college fund, personal assets and even your future wages would be at risk.
What Are Umbrella Insurance Policies?
Just as the word implies, an umbrella policy hovers over your existing underlying insurance policy.
It’s supplemental coverage that kicks in when your existing home and auto insurance coverage is exhausted.
In other words, when unforeseen and tragic incidents result in a personal injury, your umbrella policy will be what keeps your personal assets in tact.
If you are found to be legally responsible for injuring someone or damaging their personal property without a personal umbrella policy, anything beyond the standard limits of your insurance coverage will come out of your own pocket.
Who Needs An Umbrella Insurance Policy?
If you own a home, rent an apartment, drive a car or own a watercraft (boat, jet ski, etc.) you should consider carrying an umbrella policy.
If you engage in high-risk activities or hobbies that increase your odds of getting sued, such as owning a swimming pool, living alongside a lake, or entertaining frequently - you should also supplement your insurance with a personal umbrella insurance policy.
How Much Coverage Do I Need?
Take into consideration all of your personal assets and account for all your potential risks to help you determine the amount of coverage you need on your umbrella insurance policy.
For example, if you operate a business in your home and have employees and clients stopping by regularly - what happens if your driveway isn’t shoveled and your client slips and falls?
Identify the risks you face to then evaluate the amount of additional coverage you should have for your umbrella insurance policy.
How Much Does An Umbrella Insurance Policy Cost?
Here’s the good news…
It’s very inexpensive.
For most people, for less than $0.50 per day, you can secure a $1 million umbrella policy. It gives you peace of mind that your personal assets are protected from any unforeseen incidents.
So consider cutting the extra $0.50 cents your spending on adding soy milk to your latte at starbucks, and think about investing it in protecting your hard-earned assets.
In a nutshell, that’s what it comes down to.
And it’s a term that’s all too familiar to us in our everyday life.
It’s the reason we wear seatbelts in our car.
It’s the reason we wear life vests on a boat.
And it’s the reason we use umbrellas in the rain.
So why not apply it to what you treasure and cherish most - your personal assets.
Don’t wait for a rainy day to find out you needed the additional coverage a personal umbrella policy can provide.
Protect what’s important.
Ready to secure an umbrella insurance policy?
Have questions about an umbrella insurance policy?
Call (330) 334-1561 and ask to speak with a Personal Account Manager at The O’Neill Group, or email us at firstname.lastname@example.org.
We look forward to hearing from you.
This article was adapted from Zywave. This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.