Personal Umbrella Liability Insurance-What is it and do you need it?
If you were found liable for an accident, would your current insurance coverage be enough to pay for a judgment against you, or would your assets be at risk to help pay? “What about my homeowners and auto insurance? Don’t they cover me?” If you are sued, your standard homeowners or auto policy can provide liability coverage, paying for judgments against you along with your attorney’s fees, up to a limit set in the policy. However, if the judgment against you is for more than your insurance covers, you could be forced to pay a legal judgment from your current assets and future earnings. You might think this scenario is unlikely, but what would you do if it became reality? That’s where a personal umbrella liability policy can be beneficial to help you provide the protection you want.
With a Personal Umbrella policy, you’ll have additional liability limits over and above those provided by your underlying homeowner and auto policies. An umbrella policy can help prevent financial hardship by providing protection that you choose for both current assets and future earnings.
Umbrella Insurance Explained
So how can a personal umbrella policy provide the protection you want? This type of coverage offers additional protection above what your auto and homeowners policies will cover. For example, should you be involved in a car accident and sued, your auto policy covers you up to a predefined amount, your coverage limits. If the cost goes over that limit, your umbrella policy kicks in and covers you for an additional amount up to the limit on your umbrella policy.
You may also think that only those with a large amount of assets would benefit from an umbrella policy, but that’s not necessarily the case. Do you like to entertain? Have a pool? A large dog? You could benefit from considering an umbrella policy. Ultimately, if you or something you own accidentally causes damage to another person, you can be sued for more than just what you have in the bank. Any retirement funds, investments, savings and even future earnings can be at risk to pay for a settlement. In some states, the equity in your home can be part of the judgment and you may have to sell your home to pay for a judgment against you.
Regardless of your personal finances, if a situation arises where you may be held financially responsible for an accident, it could be beneficial to purchase an umbrella policy. A million-dollar umbrella policy is available for far less than you may think as well. Depending on your policies you can get coverage in Missouri or Kansas for as little as $120/yr.
Other Benefits
Besides providing increased liability limits, a Personal Umbrella policy can fill gaps in your coverage with added benefits, such as:
- Coverage for claims that may not be covered by your underlying Homeowners, Auto, or Watercraft liability policies, such as libel, slander, or defamation of character.
- Worldwide coverage.
- Paying for defense costs and attorney fees associated with claims against you that are covered by your Personal Umbrella policy, but not by your primary policies.
Protect your future with the coverage you want
If the unexpected occurs, do you have enough coverage to protect you and your family’s assets? Talk to me about adding a Personal Umbrella policy to your insurance portfolio. The added protection you choose with an umbrella policy can outweigh the minimal cost, and can be financially advantageous should you need it.
Do you have questions or comments on umbrella policy coverage? Call 816-795-5977 or email jolson3@farmersagent.com.
Protect Your Family During Severe Weather
Did you know that March is Severe Weather Preparation Month?
While it may still feel like winter outside, it won’t be long until spring arrives. And with it comes spring storms! Is your family prepared?
First things first, make sure you have designated a safe place to go to if the weather gets bad. It could be a basement, closet, or room with no windows or outside walls. Make sure this space is cleared out enough that you could easily get your family inside if needed. (You don’t want to be clearing out the closet if there is a tornado!)
Next, put together a small emergency kit. What would you need if the power was out? Consider putting in flashlights, extra batteries, canned food, and plenty of water. (Don’t forget supplies for your pets too!)
Keep emergency phone numbers in your cell phone contacts, including the all our phone numbers
Office: 816-795-5977
Jon’s Cell: 816-304-1614
Claims: 800-435-7764
You could even save a note in your phone with your policy numbers too!
While we can’t prevent bad weather, it’s always great to be as prepared as possible. Take care of your family first and know that we’ll be there to protect your belongings.
March Home Maintenance
What do you need to do this month to keep your home running smoothly and your family protected? Read below to find out!
Change Batteries In Smoke Detectors – When the time changes, it’s a great idea to change the batteries in all smoke and carbon monoxide detectors. This way you always know that they are working and in good order! The spring time change this year is on Sunday March 8th.
Make A Severe Weather Plan – Designate a safe place in your home in case of bad weather. Stock it with basic emergency supplies and throw in an extra flashlight and batteries too!
Check Your Credit Report – March is Credit Education Month. When was the last time you checked to see that your credit reports were accurate? If it’s been over a year, stop by www.annualcreditreport.com and order a free copy today.
Review Your Insurance Discounts – Are you getting all the discounts you qualify for? Call us to review your policy and see if there are any changes that need to be made.
And as always, give us a call if you have any questions or need assistance with auto, home, business, or life insurance.
Jon Olson Agency-Farmers Insurance 