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Whether through your homeowner’s or car insurance policy, liability insurance will protect you against a lawsuit if you are liable for someone else’s expenses relating to an accident. However, your coverage will only extend as far as the coverage limits designated in your homeowners or auto insurance policy. Therefore, if you have assets you wish to protect in the event you are involved in a lawsuit, you will want to ensure that you have higher levels of insurance protection, which is where umbrella insurance policies may come in. Umbrella insurance coverage is designed to protect you from significant financial damage if you are financially responsible for a catastrophic event. Umbrella insurance can be considered a type of asset protection strategy to ensure that your home, auto, and family’s financial security is protected.
Have you been involved in an accident, or are you facing a lawsuit? Contact Ali Awad, ‘The CEO Lawyer’ and his team of experienced personal injury attorneys at the CEO Lawyer Personal Injury Law Firm by calling (833) 254-2923 or contacting us online to receive your free and confidential case evaluation. Attorney Ali Awad, ‘the CEO Lawyer,’ established the CEO Lawyer Personal Injury Law Firm and quickly turned it into one of the fastest-growing law firms in the country. If we take your case, you won’t pay anything until we win.
Umbrella Car Insurance
Umbrella car insurance will provide additional coverage, or excess liability insurance, above and beyond your auto liability coverage. This coverage is designed to provide you peace of mind if you ever become involved in an expensive situation in which damages you are liable for exceed your base policies so that your assets remain protected. An umbrella policy can provide two types of coverage: defense costs and liability. Umbrella policies will cover what your primary home and auto insurance excludes or will provide additional coverage beyond the coverage limits of your other forms of insurance. Umbrella insurance will cover you in various situations for bodily injury, property damage, or personal injury in which you are found negligent or at-fault for someone else’s damages.
What Does Umbrella Insurance Cover?
Umbrella insurance may cover an extensive range of costs you may become liable for in the event of an accident. Additionally, umbrella insurance may cover other legal expenses not covered under liability insurance. Umbrella insurance may cover expenses such as:
- Medical expenses
- Malicious prosecution
- Wrongful entry or eviction
- Pain and suffering damages
- Property damage
- Legal defense costs
- False arrest, imprisonment, or detention
- Defense in other lawsuits such as libel, defamation, or slander cases
Typically, your liability insurance will cover damages up to your policy coverage amount, while umbrella insurance will cover expenses above and beyond your standard policy limits. It is best to contact your insurer to understand the specifics of your policy coverage.
What Umbrella Insurance Won’t Cover
Umbrella insurance will not cover any injuries or damage to your property you may sustain. Medical expenses and property damage would need to be covered by other forms of insurance, such as health insurance, MedPay, homeowner’s insurance, and other insurances. Other losses that will typically not be covered by umbrella insurance include:
- Criminal charges and fines
- Damage to personal belongings
- Oral or written contracts
- Intentional acts
- Damage from terrorism, war, or radiation
- Communicable disease
How Does Umbrella Insurance Work?
Umbrella insurance will come in when base liability limits have been utilized. For example, if you are liable for a car collision involving multiple people who have sustained injuries. If their injuries amount to $200,000 above your liability auto insurance policy limits, umbrella insurance coverage may cover the remaining $200,000. Without umbrella insurance coverage, your assets such as your savings and property may be at risk.
Do You Need Umbrella Insurance?
Affluent households or those with considerable assets, in particular, should consider purchasing umbrella insurance to protect their assets. In addition, affluent families may be targeted by individuals looking to file a lawsuit. Particularly, you may want to consider purchasing umbrella insurance if any of the following circumstances apply to you, as this considerably increases your chance of being sued:
- You are a public figure or have a high public profile.
- You host large parties at your home or one of your properties.
- You manage a family trust.
- You have horses, dogs, or other livestock.
- You have a pond, swimming pool, or trampoline.
- You serve on a charitable board.
- You employ household staff, such as nannies, tutors, cooks, or housekeepers.
How Much Umbrella Coverage Do I Need?
When choosing coverage amounts, you should keep a few things in mind:
- Value of your assets: You will want to cover your net worth (or what you stand to lose in a lawsuit).
- Projected future income: In a large lawsuit, future income could be at risk. Consider your future earning potential.
- Reputation: Legal proceedings can be damaging to an individual’s reputation. Ensuring that you and your assets are protected can help put your mind at ease should you become targeted in a lawsuit.
How Much Does Umbrella Insurance Cost?
On average, $1,000,000 of umbrella insurance coverage will cost $383 annually. Quotes will be individualized depending on your needs. Your insurer will base your rate on factors such as:
- Credit history
- Net worth
- Location
- Driving Record
- Risk
Personal Injury Attorney
Have you been involved in a car accident or are you facing a lawsuit? If so, do not wait to contact the experienced liability personal injury attorneys at the CEO Lawyer Personal Injury Law Firm. Call us today at (833) 254-2923 or contact us online to receive your free and confidential case evaluation.
You already understand the importance of quality insurance coverage, but if you are involved in a liability claim, without umbrella insurance to cover any gaps, you may be liable and left with your assets exposed. A personal umbrella insurance policy can help put you at ease. When you need help facing a lawsuit, contact Ali Awad, ‘The CEO Lawyer’ and his team of experienced attorneys today to see what we can do to assist you to obtain the most favorable outcome.