You’ve heard the stories – someone loses their life’s savings and has to start all over again, delaying retirement and dreams of a financially secure future, all because of an unfortunate accident. These are the instances when having good insurance was not good enough. Ultimately, peace of mind should never cost a fortune, but you need insurance that covers a fortune to gain peace of mind. With an umbrella policy from Feldbruegge Insurance, you can rest easy knowing you are covered against third-party damages and loss that exceed the coverage of your primary policies – all at an affordable, competitive rate that fits your needs and budget.
What is Umbrella Insurance?
Personal umbrella insurance fills the gap when you exhaust the liability coverage limits on your auto insurance or homeowners insurance. In some cases, it can even provide coverage for liabilities that are excluded by other forms of coverage. Think of it as a safety net, ready to catch you when your primary protection is not up to the task. How does it work?
You purchase primary insurance, such as homeowners and auto insurance, selecting high liability limits. You also purchase umbrella insurance as a backup in the event those policies fall short of your coverage needs. If an accident occurs and you are sued, your primary coverage pays first, and your umbrella policy picks up the slack, paying for excess covered damages that exceed your primary coverage limits.
Covered for the Worst
Umbrella policies provide coverage against extreme circumstances. Where your auto insurance can likely take care of a fender bender and a victim’s doctor or chiropractic visits, it might not cover all the damages if you caused a multi-car pileup that resulted in totaled vehicles, injuries, or even fatalities. These types of scenarios often lead to major lawsuits – the kind that yields judgments and settlements worth six or even seven figures. If you have $250,000 in maximum liability coverage on your auto insurance policy, who will pay the remaining $750,000 for a million-dollar lawsuit?
Without an umbrella policy, you might have to liquidate your assets, drain your savings, and even work to make payments and satisfy your new debt. This could prove detrimental to your financial security and dreams for the future. Purchasing umbrella insurance is an affordable and easy way of protecting your income and assets against the risk of litigation and loss.
Umbrella Policies are for Everyone
Umbrella insurance is often misunderstood – particularly regarding its advantages for average households with little or no financial assets. This misunderstanding often causes individuals to believe they have nothing to lose in a lawsuit – a mistake that could be costly. Even if you are fresh out of college with student loans and no savings or investments, a major lawsuit could affect your finances. That is because judgments ruled against you are your responsibility to pay, even if you do not have the means to do so right away. As you earn money, generate investment income, or receive a future inheritance, a court could order a garnishment of your income to help compensate a victim for damages. This could affect your ability to save for the future, pay down other debts, and enjoy a financially comfortable lifestyle.
Furthermore, everyone is at risk of liability – even if you do not own any high-risk assets, such as swimming pools, trampolines, or personal property. If you drive a car, you could cause an accident. If you have kids, they can cause damages. If you have pets, they could become physically aggressive. If you rent an apartment, you could be responsible if someone slips on your wet kitchen floor.
Types of Covered Events
Umbrella insurance may help pay excess liability damages for:
- Property damages
- Injuries
- Libel
- Slander
- Defamation
- False arrest
- Rental liability abroad
- Landlord liability
- Shock and Mental Anguish
- Litigation defense expenses
- Legal fees
- And more
Whether your dog bites a guest in your home, your child injures another child at school, you injure a pedestrian with your vehicle, or a child breaks her leg jumping on your trampoline, umbrella insurance can help cover the damages that exceed your primary coverage limits.
Coverage Exclusions
Note that not all liability events are covered by umbrella insurance. Most policies feature exclusions for intentional and willful acts. Your policy may also exclude coverage for liabilities stemming from contractual disputes, crime, or a business you own. In addition, your losses would not be covered.
Choosing an Umbrella Insurance Policy
Umbrella policies can vary in their coverage types and amounts. Generally, most policies provide coverage in million-dollar increments. Often, coverage becomes incrementally less expensive as you add on higher limits to the policy. Your independent agent can help you determine how much coverage is right for you. In addition, shopping for coverage with an independent agent means finding competitive pricing. Many policy-holders are surprised to learn how affordable high-limit liability coverage can be – often less than the cost of going to dinner once a month.
Request a Free Quote
Finding affordable umbrella insurance is simple when you work with an independent agent. At Feldbruegge Insurance, we shop and compare coverage and rates so you don’t have to. We can help you identify a policy that fits your needs, and we can also help you qualify for umbrella coverage if your primary liability insurance limits are not currently high enough to meet the underwriting requirements of your umbrella issuer.
Don’t risk losing everything. Talk to an agent to request your quote today.