What is an umbrella policy? Have you ever wondered about what an umbrella policy is and who needs one? Learn how excess liability insurance works and when it kicks in to cover your family and assets.
What is an umbrella insurance policy?
Definition: Umbrella policies provide additional insurance protection that surpasses your current insurance coverage limits. Umbrella coverage can kick in in the event of personal injuries, damage to the property of others, lawsuits and other personal liability occurrences.
Learn how an umbrella policy works and when it kicks in to cover your family and assets from the insurance agents at Montgomery & Associates Insurance & Financial Services. Our carriers include Progressive Insurance, Chubb, Safeco Insurance, and others. Let us compare costs, premium rates, and deductibles for you.
What Umbrella Policies Are
At Montgomery and Associates Insurance & Financial Services, our passion is to prevent possible catastrophic losses liquidating your estate. Umbrella insurance policies can provide an extra layer of protection to support your assets and lower risk of loss. A recent study shows 89% of the affluent consumers are currently underinsured. As wealth is accumulated, affluent families often outgrow their inadequate risk protection. Jury Verdict Research indicates that 14% of the personal injury awards exceeded $1 million and 4% exceeded $5 million.
Top 8 Reasons you May Need an Umbrella Policy
Here are some common situations that elevate your risk and may warrant buying an umbrella policy:
Own a dog (that may bite)
Teenager who drives at your home or business
Social media liability risk (children or adults)
Regular party hosts at home or business
Have a swimming pool or trampoline at home or work
Youth sports coach
Airbnb or VRBO owners
Have a live-in or regular nanny or home manager
Our motto: Prepare for the unexpected.
We have all heard one or two stories about individuals who were hit with enormous liability verdicts that liquidated their estate. There are many reasons someone might legitimately have a large claim against you for personal damages, including:
· Fatality or catastrophic injury as a result of an auto accident.
· Accidental injury that may occur on your property.
· Accidental damage that you cause to someone else’s property.
· Reputational damage you cause by a careless posting made online.
At Montgomery and Associates we offer net worth protection to our Private Client customers through an Excess Liability policy.
Umbrella Policy Excess Liability Protection
Personal excess liability coverage is the most effective risk management tool against potential financial loss. Your home and auto policies provide only the first layer of liability coverage. That is why additional protection is available through excess liability insurance. An excess liability insurance policy kicks in when the amount of coverage provided by your home or auto policy is not enough to cover the settlement. Furthermore, included in the policy is the defense costs for a covered loss.
Liability Risk Management
The following are the most common risks with the potential to lead to a liability lawsuit.
· Teenage drivers
· Social media use
· Home entertaining
· Dog ownership
· Swimming pool
· Domestic employees
How many of the above apply to your life?
How much liability coverage is enough?
Do I need an umbrella policy? The answer to this question is different for everyone and depends on your unique circumstances. Connect with a Montgomery & Associates Private Client Specialist today.
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