Why Do You Need Umbrella Insurance?

When it rains, it pours. In the case of some lawsuits, it can be a monsoon. You have home and auto insurance policies that protect you from limited liability claims, but when those costs exceed your coverage, you are left exposed to the torrential downpour. You need an umbrella insurance policy to keep you safe and dry.

Umbrella policies start to work after your home and auto insurance limits are exhausted, providing you with extra liability coverage. Very few home insurance or car insurance policy limits exceed $500,000 in liability coverage, yet 13 percent of personal injury awards are $1 million or more and an even greater percentage are between $500,000 and $1 million.

A sufficient umbrella insurance policy depends on where you live, your earning potential and your set of unique risks. The limits you set and the type of coverage you choose should depend on your net worth and your exposures. It’s important not to short yourself on coverage. If there is a gap between your home or auto insurance and your umbrella policy, you are responsible for covering the difference. A judge could order you to pay up by liquidating savings and investments, real estate and personal property. You could even have your wages garnished to settle the balance.

Many people are pleasantly surprised at the amount of umbrella insurance protection they can purchase for a few hundred dollars. A $1 million umbrella policy can be found for as little as $300 a year in premiums, and double the coverage does not mean double the cost. Some policies even offer to pay the cost of a public relations campaign to restore any damage a lawsuit can do to your personal reputation. That’s peace of mind and great coverage for a relatively small investment.

Benchmark Insurance agents are always available to answer any questions you may have, suggest umbrella policy options best for you and help identify you risks. We are able to locate you a number of quotes from a variety of providers, ensuring the policy you choose offers the best protection at the most affordable rates. Contact us to find out more about an umbrella insurance policy that can keep you out of the rain.