In the event that someone is injured on your property and you are found legally responsible, you could be faced with a costly financial burden. In fact, without a personal umbrella liability insurance policy, any expenses beyond the limits of your standard policy are your responsibility. This applies to your homeowners, renters, automobile and watercraft insurance policies.
Personal umbrella liability insurance provides an extra layer of protection over your personal assets for when your standard liability coverage is exhausted.
Engaging in everyday activities can put you at risk for a lawsuit.
Simple things like having a swimming pool or entertaining guests in your home can increase the chance that someone will get injured and sue you. To minimize your risk, consider a personal umbrella liability policy.
Recommended Reading: Life Events That Affect Your Insurance Needs
Why is a personal umbrella liability policy important?
It works to fill the gaps in your coverage and provides the following benefits:
- When litigation ensues, it’s typically for a large amount. If you get into a car accident and injure several people, you could be sued for millions of dollars; well beyond the limits of your automobile policy. You can also be held responsible if your dog bites someone, if your child injures another kid in a fight at school or if a handyman hurts himself at your home.
- Umbrella policies cover legal fees because the insurance company assumes the risk, not you.
- Coverage is inexpensive and easy to obtain. Just give us a call to add it to your current policy.
- You’ll have peace of mind knowing that you are covered in case of a fluke occurrence.
How much coverage do you need?
Take into consideration your total personal assets and your potential for personal risks when determining how much coverage you need. A wide range of factors, such as:
- Whether you have hired help.
- If you have teen drivers at home
- If you operate your business out of your home
All of which can determine how much coverage is appropriate for your circumstances.
What are the policy limits?
A $1 million limit is typical and higher limits are available. Contact us today to determine how much coverage is right for you.
Who Needs an Umbrella Liability Policy?
You do! Contrary to popular belief, umbrella liability policies are not just for the wealthy. At Acentria, we recommend that everyone considers carrying an umbrella policy. If you engage in a high-risk activity or hobby that increases your odds of getting sued (such as having a teenage driver, owning a swimming pool or entertaining frequently), it is wise to supplement your insurance with a personal umbrella liability policy.
Personal Umbrella Liability Basics
Accidents happen—and it’s not uncommon for jury awards and out-of-court settlements to run into the millions of dollars. While it’s difficult to pinpoint the monetary consequences of the risks you and your family take each day, are you certain your current liability insurance offers you enough protection?
For example, consider the following:
- Your teenager runs a stop sign, causing a serious accident.
- A deliveryman falls on your sidewalk and is seriously injured.
- A babysitter is injured by your otherwise friendly dog.
If you are found to be legally responsible for injuring someone or damaging their property, without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket. Standard liability insurance generally includes homeowners, renters, auto and watercraft policies.
Like an umbrella that protects you from the rain, a personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is exhausted.
How Much Coverage Do You Need?
You’ll want to consider not only your total personal assets but also your potential personal risks. For example, do you operate a business in your home and have employees and clients at your home on a regular basis? Does your profession or the location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you.
Coverages start at $1 million, and go as high as $5 million. When considering the value of the umbrella policy, discuss your personal needs with your Acentria representative.
How Much Does Coverage Cost?
Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets or your credit rating, a $1 million umbrella policy typically costs less than $300 annually. Premiums go up an additional $50-$75 for each million thereafter.
Count on Our Expertise
Don’t wait for a rainy day to find out you need the additional protection a personal umbrella liability policy can provide. Call Acentria today at 866.374.5084 to discuss your unique needs and learn about all of our liability insurance solutions.
Disclaimer: This brochure is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy. © 2008, 2013, 2016 Zywave, Inc. All rights reserved.
