Who Needs Umbrella Insurance?

 

Without an umbrella, rainy days will get you wet. But eventually you’ll dry off and get on with your day.

Without umbrella Assurance, a “rainy day” (like a lawsuit) could potentially undo everything you’ve worked to build. Umbrella insurance is one of the best ways to protect your money and your lifestyle.

But what exactly does umbrella insurance cover? And how do you know if you need it?

If you are wondering, Do I need umbrella insurance?we can help you find the answer.

Let’s dig!

What is umbrella insurance?

Umbrella insurance is an added layer of liability coverage for people with higher net worth. It protects your assets from lawsuits that could cause you to lose everything you worked for. It also covers large claims that would not be covered by standard auto insurance or homeowners liability policy. It even fills gaps in your boat insurance policy. Umbrella insurance is in addition to existing home, auto, or renter’s insurance policies and only becomes effective once auto or home insurance liability limits have been met.

Do you have the right insurance coverage? You could save hundreds! Contact an insurance professional today!

Think of it as a giant umbrella for your money which fills in the gaps that normal insurance won’t touch. It also protects your family and other household members. So if your teenage daughter causes a nine-car pile-up on the freeway, you’ll be covered!

What does umbrella insurance cover?

So what exactly does umbrella insurance cover? Good question.

With umbrella insurance, you are protected in these four main areas:

Body injury—Your dog bites your neighbor (bad dog, sit down, stay!) and it quickly becomes very expensive. Umbrella insurance will help you cover medical bills or lawsuits beyond your typical home insurance policy for someone injured on your property.

property damage— If you are in a serious car accident, car insurance liability is great, but it has limits. Umbrella insurance will cover the rest of the damage. It even covers repair costs if you destroy the rented equipment (like crashing your rented Jet Ski on the dock). Or if your child damages school property, the umbrella can also help.

Damage to reputation“If you damage someone’s reputation (in person, online, or even maybe in the metaverse?), you could face a very big lawsuit. And if you lose, you’ll thank your lucky stars for having umbrella insurance.

Court costs—Umbrella insurance also covers legal fees if you are sued for any reason. So you don’t have to pay everything out of your own pocket just to defend yourself.

What is not covered by Umbrella insurance?

There are some things umbrella insurance is not it blanket. Here are five cases where you shouldn’t rely on umbrella insurance.

Personal property—Umbrella insurance will not help you if you accidentally destroy one of your possessions. It only covers Other people Injury or property damage.

Criminal acts—If you seriously injure someone, umbrella insurance will not cover their injuries or any resulting lawsuits. You are alone.

Commercial incidents— Umbrella insurance will not cover corporate civil liability. That’s what trade assurance is for.

Flood damage— Similar to homeowners and renters insurance, umbrella insurance will not kick in when flood waters rise. You will need flood insurance to cover flood damage.

Contract worker injuries—Umbrella insurance will not cover contract workers who are injured on your property while working. Make sure any construction company you use has their own insurance or you could be at risk.

Who needs umbrella insurance?

If you have a net worth over $500,000, you need umbrella insurance. This is because the more you have, the more you have to lose, and normal insurance policies will not provide sufficient coverage. So if you’re on your way to millionaire status (lots to do!) or already there, umbrella insurance is for you.

Also, the reality is that rich people often have a target on their backs. Maybe you have heard of friends or family members being sued and losing everything. You ask yourself, Am I next? In a world where people can and should sue for just about anything, some people’s idea of ​​a get-rich-quick scheme is sue a rich person (sad but true). But with a sound umbrella insurance policy in place, you won’t have to worry about lawsuits wiping out your hard-earned wealth.

How much umbrella insurance do I need?

If you are wondering, How much umbrella insurance do I need?, we will show you how to understand this.

First, umbrella insurance starts at a minimum of $1 million in coverage. A good rule of thumb is that your umbrella insurance should cover your all net worth. Now is not the time to be cheap. You should also seriously consider your risk of being sued. If it’s higher (and be honest), you should get more coverage.

If you fall into two or more of these categories, you may need more than the $1 million minimum coverage:

• You are the owner
• You have recreational vehicles (Jet Skis, dirt bikes, etc.)
• You have an inexperienced driver in your household
• You train children’s sports
• You regularly invite people to your home
• You have “attractive nuisances” for a curious child (trampoline, swimming pool, etc.)
• You drive a luxury car
• You are part of a board of directors or a non-profit association
• You regularly post product and business reviews
• You practice sports where you could hurt others (hunting, skiing, etc.)
• You frequently travel outside the United States and are concerned about liability claims
• You are the owner
• You have a public profile of success and wealth

How to Get Umbrella Insurance

If you are someone with a higher net worth, you are at risk. And you haven’t worked so hard in all these years to let someone else come in and take him down with one lawsuit.

Umbrella insurance protects your money, your assets, your lifestyle and your future legacy. Don’t put this off any longer!

One of our experienced insurance agents who are part of our Approved Local Provider Program (ELP) can review your situation and shop around to find you the best deal. And they’re RamseyTrusted, which means they’ll go above and beyond to make sure your assets are protected.