You work hard to reach your goals, save for the future, and build a nice life for your family. You take a vacation every year, put a little away for college, and maybe even splurge on some ‘extras’ like a boat. If you work hard, you might score a high-paying job that promises years of financial security. If you’re lucky, you might even stumble on a windfall through a great investment or an inheritance. Then, in a split second, it could all come crashing down if you are sued. Sure, you have liability insurance through your home and auto insurance; but is it enough to cover a million-dollar claim? Unless you have umbrella insurance to help supplement your liability, you might lose everything you have worked so hard to attain.
Then, in a split second, it could all come crashing down if you are sued. Sure, you have liability insurance through your home and auto insurance; but is it enough to cover a million-dollar claim? Unless you have umbrella insurance to help supplement your liability, you might lose everything you have worked so hard to attain.
Take, for example, a driver who injures a 55-year old surgeon in a car accident. The accident leaves the victim permanently disabled and unable to perform surgery ever again. In addition to suing the driver for medical expenses and property damages, the victim also sues to recover a decade of lost future income, a total that reaches $5 million. The driver’s auto insurance limits barely scratch the surface of that judgment.
Without umbrella insurance, the driver is forced to sell his boat and RV, as well as liquidate his savings and investment accounts. A court also orders garnishment of future wages for years to come to help satisfy the debt.
Umbrella Insurance is for Everyone
You can avoid a scenario like this one. Even if you do not own a boat, RV, or other assets, remember that your ability to earn a wage as well as any future inheritance you might receive could be at risk in a lawsuit. Best of all, the coverage is inexpensive, starting at around $200 or less for a $1 million umbrella policy. Despite its affordability, Forbes reports that personal liability insurance is the most under-purchased coverage in the U.S.
Here at Pagel & Associates Insurance, we work hard to ensure our clients are not vulnerable to gaps in their coverage. We can help you learn how to better protect your future and your assets by choosing the right amount of supplemental liability insurance, with coverage limits ranging up to $5 million. More than just excess liability coverage, our umbrella policies offer broadened coverage beyond that which is likely available through your home and auto insurance.
That means that if you are sued for something like libel, which may be covered under your umbrella but not under your homeowners insurance, your umbrella policy becomes the primary payer for that liability.
To qualify for umbrella insurance, most issuers will first require that you have a minimum amount of primary liability insurance through your home and auto coverage since these are the policies that pay first in a claim. Typical coverage requirements include:
- $300,000 or $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability OR
- $300,000 combined single limit (CSL)
If your current coverage is not up to the standard of your umbrella issuer, we can help you raise those limits. We can also show you how to capture additional savings by purchasing your homeowners and umbrella insurance from the same carrier. Call us today for more information and to request your free quotes. We look forward to serving you soon.
Do you know how much liability coverage you need to protect your assets and future earnings?