Umbrella insurance is a form of liability insurance that will “cover” your basic liability policies like your home and auto insurance with a higher liability limit.
An umbrella policy’s main purpose is to protect your assets from unforeseen events like a tragic accident in which you are held responsible. If a lawsuit is filed against you as a result of an auto accident or accident at your home, your umbrella coverage would pay the damages. The damages would be those you’re legally responsible for up to the policy limit.
The reason an umbrella policy is important is because your car, house, investments, normal checking and savings accounts and even future income are all considered assets. If you are sued for a lot of money and do not have enough liability insurance or an umbrella policy to cover the costs, all of your assets would be at stake. People buy umbrella policies to prevent this from happening in the event of a tragic accident.
Typically you can buy a $1 million umbrella policy for $150-$200 per year. You can purchase the umbrella policy with the same company that insures your home and auto. Your risk of claims increases with young drivers and homes with pools or trampolines. If you fall into these categories, we recommend getting an umbrella policy.
Contact us for more information: 972-432-6650