What Is Umbrella Insurance, and Why Do You Need It?
When it comes to protecting your assets, standard insurance policies like auto and homeowners insurance offer valuable coverage. However, they may not always be enough. That’s where umbrella insurance comes in. This extra layer of protection ensures you won’t be left financially vulnerable in the face of unexpected, high-cost liability claims.
What Is Umbrella Insurance?
Umbrella insurance is a type of liability insurance that extends beyond the limits of your existing policies. It kicks in when the coverage from your home, auto, or other primary insurance policies is exhausted, helping cover legal fees, medical bills, and damages if you’re found liable for an accident or lawsuit.
What Does Umbrella Insurance Cover?
Umbrella insurance offers broad protection, including:
- Bodily injury liability: Covers medical expenses if someone is injured on your property or due to an accident you caused.
- Property damage liability: Pays for damages to someone else’s property, such as a vehicle or home.
- Legal fees: Helps cover attorney costs and court fees if you’re sued.
- Personal liability claims: Provides coverage for slander, libel, or defamation lawsuits.
- Incidents beyond home & auto: Protects against liability risks not covered by standard policies, such as rental property incidents or accidents involving recreational vehicles.
Who Needs Umbrella Insurance?
While anyone can benefit from umbrella insurance, it is particularly important if you:
- Own property or valuable assets.
- Have significant savings or investments.
- Engage in activities with higher liability risks, such as hosting gatherings or owning rental properties.
- Have teenage drivers in your household.
- Want peace of mind knowing you’re protected against unpredictable lawsuits.
How Much Umbrella Insurance Do You Need?
Most policies start at $1 million in coverage, but you can typically increase your limits to $5 million or more based on your needs. The cost is surprisingly affordable, with many policies ranging from $150 to $300 per year for $1 million in coverage.
Lawsuits and accidents can happen when you least expect them, and the financial consequences can be devastating. Umbrella insurance provides an extra layer of security, ensuring that you, your assets, and your future are well-protected.
At Stanton Insurance Group, we’re here to help you find the right coverage for your unique situation. Contact us today to learn more about how umbrella insurance can safeguard your financial well-being.
