Why You Need Umbrella Insurance
Years ago, insurance agents only recommended umbrella insurance to their wealthy clients. They were individuals who had at least a million dollars in assets. Yet, these days, their outlook differs. Now, these professionals offer this type of coverage to anyone earning a living.
The reason behind the change is the current climate of litigation. It’s not uncommon for a judge to order a ruling involving a person’s current and future assets. Therefore, the average Joe may be liable for an astronomical sum. For the rest of his life, he’ll work to pay for a mistake losing the ability to enjoy any quality of life.
So, who needs umbrella insurance? Everyone of working age. It’s coverage for unfortunate incidents in life requiring large amounts of money to resolve.
How to Prepare for Umbrella Insurance
Unlike other insurance policies, umbrella coverage requires preparation. Sellers of this type of policy do so, but with guidelines. Buyers must adjust their auto and homeowner’s liability limits to $300,000 or $500,000. They must maintain these levels throughout the life of the umbrella policy. Then, there’s the fee.
There’s a charge for umbrella insurance policies. The amount of coverage and risk drive the price. Typically, coverage starts at $1 million and goes up to $5 million. Also, these policies cover other losses excluded by an auto or homeowner policy such as slander and attorney fees. But don’t worry too much about the cost. At KSA insurance, we work within your budget.
The last part of the preparation for an umbrella policy is to figure out your assets. What are you worth and what potential hazards do you face? The answer to this question helps determine that amount of coverage you should buy.
Other Benefits of Umbrella Insurance
As mentioned previously, umbrella policies coverage claims excluded by an auto or homeowner policy. This factor is a perk of the plan. Below is a list:
Libel – written false damaging statements
Slander – spoken false damaging statements
Attorney Fees – costs for a legal representative
Defamation of character – damaging a person’s good reputation
Liability losses everywhere in the world – International and private claims involving liability
Detention, false arrest or imprisonment – being wrongly put in jail
Liability caused by rental ownership – claims for injuries on a rental property
The above coverages make getting an umbrella policy more attractive. It pays for losses that other insurance plans reject.