Personal Umbrella Insurance

Your standard insurance coverage may fall short when it comes to covering certain losses. This is where a personal umbrella insurance policy becomes a wise choice.

These policies offer an additional layer of protection that goes beyond what your auto insurance, boat and marine insurance, ATV insurance, homeowners insurance, or other asset protection can provide.

Personal umbrella insurance steps in to safeguard you against various potential financial setbacks, such as severe injuries to guests on your property or when you’re found at fault in an accident involving automobiles, boats, RVs, or other motorized vehicles.

In the event that another party suffers an injury, your standard insurance policy may prove inadequate to cover the full extent of the damages, including medical bills, lost wages, pain and suffering, and more. These policies typically have predefined limits. When the cost of damages exceeds these limits, your personal umbrella insurance policy becomes a crucial safety net.

Many individuals find peace of mind in the added security offered by a personal umbrella insurance policy. These policies can vary in terms of what they provide, making it essential to select the right policy to suit your needs. A lawsuit following an injury accident can lead to damages far exceeding the coverage limits of your standard insurance, putting your personal assets, such as future earnings and your home, at risk.

A personal umbrella policy is your shield against potential financial losses. We encourage you to reach out to one of our local agents at Klinger Insurance Group in Germantown, Maryland, to learn more. We can assist you in selecting a personal umbrella policy that safeguards your assets, including your home, personal belongings, and income, in the event a significant claim is filed against you or any household member in the future.

The Importance of Umbrella Insurance in Your Insurance Portfolio

Imagine being held liable for someone else’s bodily injury or even death. Would your existing insurance coverage be sufficient to protect your assets?

Umbrella insurance is a standalone liability policy that provides an additional layer of liability coverage over and above the limits already established by your underlying homeowners and auto insurance policies.

Life can be unpredictable, and despite our best efforts to plan for the best, unforeseen events can occur. This is where umbrella insurance becomes essential, offering additional coverage that goes the extra mile to safeguard your assets.

Umbrella Insurance in Action

To gain a better understanding of how Umbrella Insurance works, consider a real-life scenario. Let’s say you’re found liable for causing a car accident involving multiple vehicles, and the total cost to cover damages and injuries reaches $850,000. However, your Auto insurance policy has liability limits set at only $300,000.

In this situation, your insurance would cover only $300,000 for the entire accident, leaving you responsible for the remaining $550,000 out of your own pocket.

With an Umbrella policy, you can extend your liability limits beyond the maximum provided by your underlying policies. In this case, an Umbrella policy would provide liability limits above the $300,000 limit of your Auto policy, up to the limit you choose for your Umbrella policy (typically ranging from $1 million to $5 million in coverage).

In other words, you wouldn’t be left solely responsible for the remaining $550,000.

More Examples of Umbrella Insurance Coverage:

• Your dog bites a neighbor’s child.
• A fire at your condo spreads to other units.
• An accident occurs at your rental property.

What’s the Cost of Umbrella Insurance?

One of the appealing aspects of Umbrella insurance is its affordability. Most insurance carriers offer coverage starting at approximately $150 per year. The cost of your policy increases based on the number of vehicles and homes it covers, but generally, it represents excellent value for your investment, considering the litigious nature of our society.

Even with an annual premium of, say, $300, the insurance company assumes responsibility for at least $1,000,000. This represents a substantial value and is something everyone should consider, given the rising healthcare costs and potential financial risks.

It only takes one accident to potentially deplete your finances. In a world where medical expenses are skyrocketing, purchasing Umbrella insurance is a prudent decision.

To begin the quoting process, please contact our office or visit our quotes page. Our team will thoroughly assess the market to find the best coverage options for you.

Please Note: Most insurance carriers typically require you to have your auto insurance policy with them to qualify for their umbrella coverage. Stand-alone umbrella policies are also available for special situations.