Life is full of unexpected moments, and while we can’t always prevent accidents, we can prepare for them. One of the best ways to protect your financial future is by making sure you have the right liability coverage in place. While your homeowners, auto, and other insurance policies provide important protection, there are times when those liability limits may not be enough.
That’s where an umbrella policy comes in.
Accidents happen every day, and if you’re found legally responsible for injuries or property damage that exceed the liability limits on your underlying policies, you could be responsible for paying the remaining costs out of your own pocket. An umbrella policy is designed to provide an extra layer of liability protection above those existing limits.
While many people assume umbrella insurance is only for the wealthy, it’s actually an affordable way to help protect your savings, investments, future earnings, and other assets from unexpected lawsuits or large liability claims.
Here are a few examples of situations where an umbrella policy may help provide additional protection:
- You are involved in a serious auto accident where injuries exceed your auto liability limits.
- A guest is seriously injured on your property and files a lawsuit against you.
- Your child accidentally causes significant damage to someone else’s property.
- You are held liable for an accident involving your boat, ATV, golf cart, or other recreational vehicle (if covered by your underlying policy).
- You face claims for libel, slander, or defamation in certain covered situations.
An umbrella policy generally provides additional liability limits once the liability coverage on your homeowners, auto, or other qualifying policies has been exhausted. Because it supplements your existing coverage, insurance companies typically require you to carry certain minimum liability limits on those underlying policies before an umbrella policy can be added.
The good news is that umbrella coverage often provides a significant amount of additional protection for a relatively low annual premium compared to the amount of coverage it offers.
If you’re unsure whether an umbrella policy is right for you—or if you’d like to review your current liability limits—myself or your agent at the Starke Agency is always here to help. Having the right liability protection in place before an unexpected accident occurs can provide valuable peace of mind and help protect the financial future you’ve worked hard to build.
Written by:
Maggie McLeod
