A moment’s distraction or an unexpected curve leads to a car accident. Your dog gets loose and bites someone. The kids get a little too rowdy and cause damage to a home that you’re renting. These are all instances towards which people look to their personal insurance, but where insurance plans max out, many turn to umbrella liability insurance (or umbrella insurance). To some, this may just seem like an added cost, but when you’re faced with the unexpected, you may find yourself wishing you had reconsidered.
Here are a few reasons to invest in umbrella liability insurance:
Accidents Happen. To Everyone.
No matter how careful you are, you’re going to have an accident eventually. Even the best drivers can have a bad day, or something in their peripheral vision could distract them from what’s right in front of them. Sometimes you’re involved in an accident that wasn’t entirely in your control, but you’ll still have to face litigation that follows. It doesn’t make you a bad or careless person, just human. But when faced with these situations, it’s important to be as covered as possible.
Lawsuits Are Running Rampant
The U.S. Financial Education Foundation estimates that 40 million lawsuits are filed every year in the United States. With 323 million people in the United States, that gives you about a 1-in-8 chance of being involved in a lawsuit this year. Much like accidents can happen to even the most careful people, lawsuits can happen to anyone. If you can avoid a lawsuit, that’s great. But it’s better to be prepared just in case you can’t.
Homeowner, Renter, and Automobile Insurance Only Covers So Much
Primary liability insurance is necessary, but it doesn’t cover everything. Eventually, there’s a limit to your coverage, and that’s where umbrella insurance comes in handy. When your primary liability insurance maxes out, umbrella insurance will kick in, covering an extra amount and minimizing your out-of-pocket expenses. While it’s always a good idea to stay informed on what exactly your homeowners, renters, or automobile insurance covers (and how much), having that extra cushion will certainly make it easier to have peace of mind.
Protect Your Assets (Even if You Don’t Have Assets)
Umbrella insurance protects assets like your savings, college funds, or business income. If you have valuable assets, umbrella insurance is absolutely essential. However, even if you don’t have assets, going without umbrella insurance could still put you at risk. In fact, if you don’t have assets and you’re involved in litigation, it may be that much more important to have umbrella insurance. Having umbrella insurance can protect you from wage garnishments, in which the court awards damages to be taken out of future earnings.
The main reason people don’t invest in umbrella liability insurance is because it’s an added expense and one they don’t believe is necessary. We’ve already explained why it’s necessary, but it doesn’t have to be expensive, either. It all depends on how much coverage you need. The first million of coverage is typically about $200-400 each year, but can be as low as $150. As much as umbrella liability insurance provides, it’s more than worth the investment.
Remco Agency, a JPS, Inc. company, has been in business for over 30 years and is happy to offer umbrella liability insurance and answer any questions you may have about it. Contact us today for more information or an umbrella liability insurance quote.