A personal umbrella policy protects you against potentially devastating lawsuits when your primary liability insurance limits are insufficient to cover your costs. Think of it as insurance for your insurance – a fail-safe against financial ruin in the event of a major lawsuit. At Couri Insurance, we help our customers shop and compare umbrella insurance policies and determine how much extra liability protection is right for them.
You Could be Sued
When you think of million-dollar lawsuits and the assets at stake, you may think of large corporations, small businesses or even wealthy individuals with large cumulations of assets. However, anyone can be sued – including individuals with average incomes and savings. These things could be at risk if you are deemed liable for a third-party’s injuries, property damages, or other losses. Even if you are currently riddled with debt, you could face garnishment of your future wages and even loss of inheritances if a court expects you to receive future income.
Why Purchase Umbrella Insurance?
If you are sued, the liability coverage on your primary insurance policies, such as your homeowners and auto insurance, generally serves as your first line of defense. The high limits you choose for these policies are often enough to cover minor to moderate damages, as well as your legal fees, but what happens if your liability exceeds the limits of your coverage? With a personal umbrella policy, the additional coverage picks up where your primary coverage leaves off, typically covering an additional $1 million or more (depending on the limits you choose for your policy).
For example, imagine what would happen if your teen driver slides on an icy road while driving home from a football game. Though your son is safe and unharmed, the car he hit was carrying a medical student about to begin her residencies. The accident leaves the medical student – who has hundreds of thousands of dollars in student loan debt – unable to begin her career in medicine. Your family suddenly faces a $2.5 million lawsuit for compensation of damages, including property damages, medical bills, lost future income, legal fees, pain and suffering, and more. With only $500,000 of auto insurance liability coverage, how will you pay for the remaining damages? If you had a $2 million personal umbrella policy, your excess liability insurance could help cover the costs, safeguarding your family against financial devastation.
Understanding Umbrella Insurance
When you purchase umbrella insurance, you are purchasing flexible coverage that can provide additional liability protection for several different types of coverage, including car insurance, renters insurance, condo insurance, homeowners insurance, and perhaps even your boat insurance policies. Many umbrella policies also offer coverage for liability damages that may not be covered by your primary insurance policies. In these cases, your umbrella insurance becomes the primary coverage, as there is no other insurance in place to provide compensation for damages.
Although exact coverage details vary according to the protection outlined in your policy, your umbrella insurance may include coverage for:
- Third-party property damages
- Damages to a rented property
- Damages caused while traveling abroad
- Third-party injuries for which you or a member of your household is at-fault
- Libel, slander, and defamation
- False arrest
- Liability on rental units you own
- And more
Umbrella insurance generally excludes coverage for damages caused by willful or criminal acts
A typical umbrella insurance policy provides a minimum of $1 million in supplemental liability protection, although you can purchase additional protection – usually in increments of $1 million. When choosing your umbrella limits, it is important to work with an agent here at Couri Insurance who can help you evaluate your liability risks and the value of the income and assets that could be exposed in a lawsuit.
Who Needs an Umbrella Policy?
If you are saving for the down payment on a first home, putting away money for a child’s college education, or investing for retirement, you probably need umbrella insurance. If you expect to receive a large pension or inheritance in the future or even work into your retirement years, you probably need umbrella insurance. In fact, we here at Couri Insurance often recommend personal umbrella policies to anyone who has accumulated significant investments and assets or has the ability and intention to earn a wage or other income in the future.
Get a Quote for Wisconsin Umbrella Insurance
If you are considering umbrella insurance for your family or want additional information about how this important coverage can provide security for your financial future, contact the team here at Couri Information today. We can show you how beneficial and affordable a personal umbrella policy can be. A $1 million policy typically costs just $150 to $300 per year, with additional million-dollar increments increasing the premium by as little as $75 annually. That is a small price to pay for greater peace of mind.
Since umbrella insurance is supplemental liability protection, insurers often require high limits of primary liability coverage before issuing an umbrella policy. If you need to raise the liability limits on your auto, home, or boat insurance, Couri Insurance can help with that, too. As an independent agency, we can shop and compare insurance on your behalf, potentially securing valuable discounts on your primary coverage and helping you maximize the value of your insurance.
For more information about Wisconsin umbrella insurance or to request your free quotes, contact our office today. We look forward to serving you soon.