Is an Umbrella Insurance Policy Right For You?

Adding an umbrella insurance policy to your existing insurance coverage can provide several significant benefits. An umbrella policy is essentially additional liability insurance that goes beyond the limits of your existing policies, such as your auto or homeowners insurance. Coverage can start at $1 million and go up from there, depending on your requirements.

Here are some of the key benefits of adding an umbrella policy:
 

1. Increased Liability Coverage: The primary benefit of an umbrella policy is that it offers extra liability coverage even when traveling abroad. If you're involved in a lawsuit or found liable for a significant accident or injury, your umbrella policy can help cover costs that exceed the limits of your underlying insurance policies. It will also cover legal defense cost.  This can be particularly valuable in high-stakes lawsuits where substantial damages are awarded.
2. Protection Against Catastrophic Claims: Umbrella policies are designed to protect you from financially devastating situations. For example, if you're at fault in a car accident that results in severe injuries or fatalities, the medical expenses and legal settlements can be astronomical. An umbrella policy can step in to provide additional coverage when your primary auto insurance limit is exhausted.
3. Asset Protection: If you have substantial assets, an umbrella policy can help protect them from being seized to satisfy judgments in liability lawsuits. This can be crucial for individuals with significant savings, investments, or real estate.

 
It's important to note that umbrella insurance is not a standalone policy; it works in conjunction with your existing liability coverage. To determine the appropriate amount of coverage for your situation, you should consider factors like your net worth, potential liability risks, and the limits of your underlying insurance policies. Consulting with an insurance agent or financial advisor can help you make an informed decision about whether to add an umbrella policy and how much coverage to purchase.  Reach out and we can discuss your options.

G. Lewis Insurance
425-572-0671