When you hear the word “umbrella” what do you think about? The song by Rhianna? A device meant to protect you from the rain? When an insurance agent hears the word, we think protection. But not protection from the rain; protection of your livelihood, your future.
To better understand how a personal umbrella policy works, here’s an example:
Say you’re at fault in a car accident that injures another driver. While your regular automobile insurance will cover the other driver up to the limit you selected, say $500,000, what happens if that limit is not enough to cover the other driver’s needs?
If the other driver’s injuries are severe, he may require benefits beyond the $500,000 your policy covers. In this case, he could sue you, which means your personal assets would be at stake. This could be a small amount, but imagine if that injured driver were a surgeon or another high paying professional. What if the accident you caused resulted in an injury that kept him from doing his job for six months? Suddenly, he’s suing you for $1.5 million to cover the six months he’s away from work.
Your automobile policy covers the initial $500,000, but where would you come up with the remaining $1,000,000? A personal umbrella policy can cover the additional costs when your insurance isn’t enough. The personal umbrella policy could provide the additional coverage you need so that you don’t get stuck trying to pay the remaining balance yourself. This extra policy could protect your bank account, home, and other personal property.
But there’s so much more to an umbrella…..
Do you have a teenager, a dog, a pool, pond, lake or hot tub on your property? Do you drive, own a home? There are so many things in life that we cannot control. Have you heard of the teenager that spread a rumor about his teacher? It was so bad that it the teacher sued the parents of that student. The parents of this child would have protection IF they have an umbrella policy. Your homeowners policy DOES NOT cover libel and slander, but a personal umbrella policy does!
Here’s what you CAN control:
By purchasing an adequate amount of liability coverage through your homeowners, auto and umbrella policies you CAN take control of protecting yourself, your future earnings & assets. For the protection an umbrella policy offers, the cost is minimal! A $1mil umbrella policy may be as little as $100 per year. Some companies offer discounts, making an umbrella policy virtually FREE!
We want YOU to be protected. Let’s have a conversation about this. Give us a call today!