If you are like most people then you already have a variety of insurance policies from homeowners to auto to a pet that helps protect your assets and loved ones should an accident happen. When you purchase an insurance policy, you have the option of choosing how much liability coverage to carry which covers the expenses with a third party’s property damage, injuries, or lawsuits that may arise if you are deemed to be at fault in a covered incident. Given that you already have policies with liability coverage, it wouldn’t be surprising if you have never heard of or considered umbrella insurance. In short, umbrella insurance provides additional financial assistance when your traditional insurance policies’ liability coverage has lapsed. For example, if you are deemed to be at fault in a motor vehicle accident that injures another person and the medical bills exceed your existing liability coverage of $300,000 then you would be on the hook for the difference which could be hundreds of thousands of dollars. However, with umbrella insurance, you pick a monetary figure in excess of your existing coverage – generally $500,000 or $1 Million – which kicks in once your existing coverage has been exhausted.
While the vast majority of people could benefit from an umbrella policy it is a no-brainer for anyone with significant assets to include multiple properties, investment accounts, retirement savings, expensive vehicles, and other similar items. To determine if an umbrella insurance policy makes sense for you, start by adding all your assets together and if they exceed your current liability limits for your insurance policies then it’s time to call in the experts. At L & S Agency Inc. our friendly and talented team will take the time to walk you through your options and answer your questions so you always leave happy.