What is Umbrella Insurance?
In today's litigious environment, lawsuits can run into the hundreds of thousands of dollars or more if you or those living in your home or operating machinery or vehicles you own are determined to have been negligent. Your automobile and homeowner insurance policies will typically cover you up to the first $300,000 of a covered claim. To cover your risk up to $1 million or more, you can usually purchase a personal umbrella policy from the insurance company that insures your home and/or car.
Do You Need Umbrella Coverage?
Umbrella policies are more important when you have significant assets to protect. People with less than $250,000 of net worth should not purchase an umbrella policy. [If you have up to $250,000 of net worth, you should have at least $300,000 liability protection on your auto bodily injury per accident and your homeowners/renters/condominium liability.]
Combine insurance for a price break
When you purchase both your homeowner and automobile insurance from the same insurer, you typically receive a discount off the premiums of both policies.
Ask about minimums
The personal umbrella policy often requires a minimum of $100,000/$200,000 of bodily injury liability protection and $50,000 of property damage liability protection under the motor vehicle liability section of your automobile insurance, and $300,000 of comprehensive personal liability under your homeowner insurance. If you also own a watercraft, there may be a combined single limit for marine liability as well.
At Citywide Insurance Group we will find the right policy for you.
Our Umbrella policies covers bodily Injury or Property damage claims that you, your dependents or even your pets may cause. They start paying after your homeowners or auto insurance liability limits are exhausted. For example, if you have a home insurance policy with liability coverage of $300,000, the umbrella policy will pay claims above $300,000, up to the limit you select, such as $1 million. Or if your liability limit on your car insurance policy is $250,000 of bodily injury protection per person and $500,000 per accident, your umbrella coverage kicks in after you exhaust that coverage. You would be surprised how quickly medical bills and legal costs add up.
When you buy a personal liability umbrella policy, you're getting more than just higher liability limits. You're also buying broader coverage in case you're sued. The umbrella policy covers you if you cause bodily injury, property damage or personal injury. Some umbrella policies also cover you if you face a liability suit due to your service on the board of a civic, charitable or religious organization. But just as with any insurance policy, don't look to your umbrella policy to cover your intentional acts that cause damage. Nor will it pay for punitive damages in judgments against you. Umbrella policies also do not cover damages from any businesses you run; for that, you need a business insurance policy. Check your umbrella policy for specific exclusions.
At Citywide we will show you how to lower your cost by raising the liability limits in your current auto and home policies. We can even help lower your premium by changing your deductibles.
Call today to speak to an agent: 804-237-5949
