4 Reasons You Need An Umbrella Policy Now
You think you’ve done everything you’re supposed to. You’ve got homeowners insurance, car insurance, life insurance, and medical insurance. So no matter what sort of disaster comes your way, you’re covered, right? Unfortunately, maybe not. Though you’ve done a great job protecting your family from financial disaster, an accident that exceeds your coverage limits could lead to you paying extraordinary amounts of money out of pocket. There is one more level of protection you need – an umbrella policy.
What is an umbrella policy?
An umbrella policy protects your family from the financial devastation that can come from being found liable for damages in a lawsuit above and beyond what your regular insurance policies would pay. This type of personal liability insurance protects your assets from being seized after a judgment by covering the gap between your regular insurance coverages and the judgment amount.
Here are four reasons you should purchase an umbrella policy today – before disaster strikes:
Anyone can be sued
Think you have to be rich to be a tempting target for lawsuits? Think again. If you’re found at fault in an accident, you can be sued.
More than 400,000 bodily injury lawsuits are filed in America every year. While not every one of these makes it to court, they can cause significant financial damage and stress to the parties on the defending side.
If you have assets that someone else might want to take if they got the chance, you need an umbrella policy. You can buy an umbrella policy for between $150-$350 a year for $1,000,000 in coverage. That’s a small price to pay to safeguard your family’s home and assets from being ripped away in the event of a lawsuit.
You may be at higher risk of a lawsuit than you think
While anyone can be sued in the event they are found at fault in an accident, certain portions of the population are more at risk to be sued than others, and you may not even realize that you fit into that category.
Some facets of your life may make you more likely to be found at fault in a serious accident and be sued for damages. These include:
- Having a teen driver in your home. Teen drivers cause more car accidents than any other age group.
- You host large gatherings. The more people you are responsible for, the more risk you take on.
- You own a business. If you do business with the public, you open yourself up to a variety of frivolous lawsuits.
- You own rental properties. Owning rental properties makes you more likely to be sued in two ways. First, people living in your rental properties may be injured in one and sue you. Secondly, rental properties are expensive assets that lawyers are tempted to take in a lawsuit.
You own assets that total more than your insurance coverage
Do the math. Add up the value of all of your assets: your house; investments; cars; boats; money in your checking, savings and retirement accounts; and the value of your business (if you own one). Now add up the coverage of all of your different insurance policies. If the value of your assets exceeds the value of your insurance policies, you need an umbrella policy.
You drive a car
In 2018, South Carolina auto accidents that resulted in death cost more than $1.56 billion dollars in medical bills and lost wages.
Motor vehicle accidents are the most common cause of bodily injury lawsuits. If you drive a car, you are at risk of being found at fault in an accident. Medicals bills and lost wages from a car accident can easily reach into hundreds of thousands of dollars. If your car insurance can’t pay the full amount, you’ll be left paying the difference out of pocket unless you have an umbrella policy to cover the gap.
Protect your assets – Call us today
Edwards Insurance Agency in Taylors, S.C. helps people all over the Southeast protect their assets from the “what ifs” of life. Give us a call today.