Like any smart homeowner and driver, you have determined the best homeowners and automobile insurance policies to cover your yourself against losses due to theft, damage, injury, fire, and other natural disasters. But, are your assets really protected in the event that a major calamity or unforeseen event occurs which threatens your financial security? Umbrella insurance is a type of liability insurance which supplements your basic auto, homeowners or rental insurance policy limits. An umbrella policy has a much higher coverage limit than that goes above and beyond your basic coverage.
How Does An Umbrella Insurance Policy Protect My Assets?
An umbrella insurance policy protects your assets from claims stemming from an event in which you are determined to be responsible for excessive property damage or bodily injury, above your basic policy limits. If another party sues you, it will pay for any damages you’re found legally responsible for up to the policy’s limits An umbrella insurance policy can also protect your assets by helping cover false arrest, libel, slander and legal fees. An umbrella policy will kick in and pay once your basic homeowner or automobile liability limits have been exhausted or if the claim isn’t covered by the basic liability coverage.
Why Do I Need Umbrella Insurance?
If you are found liable for a loss, injury, damage or other events, your Federal Way WA home, car, checking and savings accounts, investments, retirement accounts, and even future income can be considered an asset. If you are sued for a large amount and don’t have enough liability insurance to cover the costs, your assets can be up for grabs. Purchasing an umbrella policy can help you prevent financial ruin in the event of a major accident or damage you are responsible for.
How Much Umbrella Insurance Coverage Do I Need?
Everyone has a different situation and has different insurance needs. However, when considering your coverage limits, remember the following three things:
- Your Risks – What are your risks as a homeowner? What are the risks of your work commute? Do you engage in any potentially dangerous activities that put you or others in danger?
- The Value of Your Assets – The more assets you have, the higher your umbrella policy’s limits will need to be to protect your property, savings and retirement funds, stocks and bonds, and possessions.
- Potential Loss of Future Income – Are you on track for a future high-paying career? Even money you haven’t earned yet can be considered an asset in a serious lawsuit.
For more information about how to protect your assets with umbrella insurance, talk with an agent at Hart Insurance today. Our Federal Way, WA insurance experts at Hart Insurance will help you determine your specific risk factors and help you find a policy that meets your specific needs and budget.