“We have a homeowners’ policy. Do we really need an umbrella liability policy, too?”
The answer: YES!!
Contrary to popular belief, just because something happens at your home doesn’t mean your homeowners’ policy will cover the resulting claim. The same goes for automobile accidents. Depending on your level of coverage, claim limits may be high, but permanent injury or death claims could easily run into the millions and exceed policy caps even for high-end homes and well-insured drivers.
That’s why CCW Insurance advises all personal lines clients consider umbrella coverage to round out their risk portfolio.
Built to fill in the gaps between other standard policies and extend coverage limits, these policies are not just for the high-net-worth individuals.
The Basics
Everyday activities and hobbies can be viewed as high-risk, such as having a teenage driver, owning a swimming pool, or entertaining frequently; all of which may increase your likelihood of being sued. Supplementing your insurance with a personal umbrella liability policy can help provide protection as well as peace of mind.
Consider the What If’s. Would the liability coverage within your homeowners’ or automobile insurance provide enough protection if:
- Your teenager runs a stop sign, causing a serious accident.
- A deliveryman falls on your sidewalk and is badly injured.
- A babysitter is injured by your otherwise friendly dog.
If found legally responsible for injuring someone or damaging their property, anything beyond the limits of your standard liability insurance coverage becomes an out-of-pocket expense. Standard liability insurance generally includes homeowners, renters, auto, and watercraft policies.
Like an umbrella that protects you from the rain, a personal umbrella liability policy provides an extra layer of coverage beyond that of your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is exhausted.
Coverage and Costs
To determine the right amount of coverage, you’ll want to consider the value of your total personal assets as well as your potential personal risks.
For example, do you operate a business in your home and have employees and clients at your home on a regular basis? Does your profession or the location of your home make you an easy target for a big settlement?
Available coverage starts at $1 million and goes as high as $5 million. Depending on the policy value and your personal risk factors, such as recent auto tickets or your credit rating, a $1 million umbrella policy typically costs less than $300 annually. Premiums go up an additional $50-$75 for each million thereafter.
Keep in mind that umbrella coverage is meant to supplement other, more traditional polices. Working with a trusted and relationship-based advisor from CCW Insurance ensures your personal insurance portfolio addresses all of your potential exposures, proactively plans for future risks, and helps identify areas to minimize vulnerability.
In addition to the availability of multi-policy discounts, sourcing all policies from a single risk advisor could highlight areas where excessive overlap is costing you extra premiums.
As your trusted advisor, our goal is to provide the best coverage and peace of mind. So don’t wait, email, call or text us today to add this extra layer of protection.
Email: ccw@ccwinsurance.com
Call: 732-280-2800
Text: 732-385-3939 to add this extra layer of protection today!