The true value of an Umbrella Insurance Policy
What is an Umbrella Policy?
Whether you have auto, homeowners or recreational vehicle policies you likely feel protected against any incident that may occur. Most of the time that might be true, however, all insurance policies have limits and life can be unpredictable. Should someone personally sue you for medical expenses, emotional distress or other, liability limits to home or auto policies might not be enough.
Umbrella insurance serves as excess coverage over and above your other policies. Standard policies range from $1 million to $5 million in coverage, reducing any out-of-pocket expenses you might have once policy limits have been reached.
Do umbrella claims really occur?
There are many scenarios where umbrella policies have been utilized when an unplanned for circumstance has occurred. For example, as distracted driving continues to be an issue an at-fault auto accident resulting in a multi-car situation is not only possible, it occurs routinely. The instigator of the crash is then responsible for damages to every vehicle involved as well as medical expenses from all injured parties. You can see how policy limits to your auto insurance might be reached very quickly.
Backyard accidents can occur without warning, especially if you have a swing set, trampoline or a swimming pool. Whether hosting the neighborhood kids, or your teenagers school friends, if one is injured in your yard, you are responsible. A severe head injury for example could result in medical expenses more than your homeowner’s policy liability limits. The umbrella would kick-in to provide coverage once the home policy has been exhausted.
Many other “common” scenarios include dog bites, unsupervised teen parties, damage caused to someone else’s property or premise while your teenager is learning to drive or a houseguest who slips and falls in the shower. An umbrella policy provides assurance that these unexpected incidents are not going to cost you your home or your life-savings in the event you are brought to court.
Protecting Every aspect of your life
A lawsuit resulting from any at-fault incident can quickly cause a financial crisis for a family. An umbrella policy protects that financial well-being as typical auto insurance covers between $300,000 and $500,000 for each accident. Damages from lawsuits can easily exceed those amounts, in fact personal injury settlements exceed $1million about 15% of the time.
Santo Insurance provides umbrella coverage for clients to prevent these (and many other) unfortunate mishaps and accidents. We are happy to discuss options and assess client need at any time, FREE of charge. Make sure you are appropriately covered!