Umbrella insurance is one of the most commonly overlooked coverage types, yet it is one of the most affordable ways a person can protect themselves against financial catastrophe. No one – from the safest of drivers to the quietest homeowners – is immune to disaster. When accidents happen, insurance helps pick up the pieces. What happens, though, if your liability insurance limits are not enough to cover your debt? Could you afford to pay thousands or even millions of dollars out of your own pocket, or would your umbrella insurance help shoulder the burden?
Consider the following example:
A man hydroplanes into another vehicle commuting home from work on I-41. He walks away unscathed, but the accident causes the driver of the other vehicle – a 40-year old surgeon – to become permanently disabled. No longer able to operate on patients, the victim sues the man for years of lost income totaling over $2 million. The man’s insurance pays for $250,000 in damages, but a court orders that the rest must come out of personal savings, liquidation of assets, and garnishment of future income. Had he purchased umbrella insurance, he might have paid nothing out of pocket.
Of course, this is only one example of when your standard liability insurance alone might not be up to par. What if your dog attacks a neighbor’s cat? How about being sued for libel after your teenager posted an outburst against one of his teachers on the Internet? There are endless scenarios in which you might face a lawsuit. While there is not much you can do to prevent it, there are easy steps you can take to prepare for it.
De Pere Umbrella Insurance: What does it Cover?
Umbrella insurance is unlike any other type of coverage, in that it helps pay for bodily injury and property damage liability stemming from many different types of perils. Think of it as back-up for your existing homeowners, renters, auto, RV, ATV, and watercraft insurance policies. If you cause bodily injury, mental anguish, damage to another person’s tangible property, or other types of loss, chances are umbrella insurance has you covered. It can even add additional protection not covered in standard coverage, such as:
- Slander
- Libel
- Liability on rental properties
- False arrest
- And more
Nearly anyone can benefit from umbrella insurance. If you are sued for everything you have, it helps to know you have a first – and second – line of defense ready to stand in the gap for you. Although coverage details vary from insurer to insurer, most umbrella policies are sold in $1 million increments – typically up to a maximum of $5 million. Your carrier will likely require that you meet certain qualifications, such as carrying a certain level of liability coverage on your other policies.
At Brian Van De Hey Insurance, we provide complete financial solutions for our customers. We understand that you work hard and want to shield the future you have invested in. Our job is to save you money and help you protect it, too. If you live in the De Pere or greater Green Bay area, we invite you to become a part of the Van De Hey Insurance family. Call us today for more information about umbrella insurance and to request your free quote. We look forward to serving you soon.
