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?
The Basics of Personal Umbrella Liability Policies
If you are found to be legally responsible for injuring someone or damaging their property, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket without the added coverage of an umbrella policy. Standard liability insurance generally includes homeowners, renters, auto, and watercraft policies.
A personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies, kicking in when your standard liability coverage is exhausted.
Who Needs an Umbrella Liability Policy?
We recommend that everyone consider carrying an umbrella policy. If you engage in a high-risk activity or hobby that increases your odds of getting sued—such as having a teenage driver, owning a swimming pool, or entertaining frequently—it is wise to supplement your insurance with a personal umbrella liability policy.
How Much Coverage Do I Need?
You’ll want to take into consideration 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 to your home on a regular basis? Does your profession or 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 can go as high as $10 million. We’re here to help as you consider the value of the umbrella policy, contact us discuss your personal needs with an advisor.
How Much Does Coverage 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, your credit rating and more, a $1 million umbrella policy typically costs about a dollar per day. Costs go up an additional $50 to $75 for each million thereafter.
The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy. © 2008, 2010, 2013, 2016 Zywave, Inc. All rights reserved.