How Does Umbrella Insurance Work?
Let’s say you were at fault in an auto accident which resulted in severe injuries to another driver. In this example, your auto policy limits cover $250,000 for the incident. But the driver’s injuries resulted in medical bills higher than your policy limit covers. In addition, he is unable to return to a high paying job as a result of his injuries, and now wants to sue you for lost income and the remainder of his medical expenses.
Without umbrella coverage, you could be personally responsible for hundreds of thousands of dollars as a result of this accident.
When you have umbrella insurance, the coverage kicks in when you have reached the limit of your underlying policy. In the example above, your umbrella insurance would cover the difference between your auto insurance policy limits and the remaining claim amount, including the cost of a lawsuit.
With limits starting at $1 million, and available in $1 million increments from there, umbrella coverage provides a large safety net against the risk of a high dollar claim.
Who Needs Umbrella Insurance?
Many people mistakenly believe that umbrella coverage only benefits those who are wealthy and have a lot to lose. That’s not the case. The reality is that most people don’t have the reserves available if they were faced with a claim amount where they were responsible for up to a million or more.
Which is why umbrella insurance can benefit almost everyone, no matter what their income or assets look like.
The value of your assets and the risks you may face are an important consideration when determining how much umbrella coverage you should carry. The more assets you have to protect, the higher the umbrella policy limit you may want to consider carrying.
For one affordable monthly premium, you can extend the limits of your personal insurance policies and ensure you won’t be left holding a bill you can’t handle in the event of a large claim.
Get Personal Umbrella Insurance Today
Aegis Insurance Markets offers umbrella insurance to fit your budget, so you can get the right amount of coverage you need at a price you can afford. Call us today at (800) 579-6369 or complete the form below for a quote, or to speak to a personal umbrella insurance expert about the best coverage options for you and your family.