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April 5, 2023

Do I need a personal umbrella insurance policy for enhanced coverage?

One question we get asked quite often is if umbrella insurance policies are beneficial or not. The answer depends, primarily, on whether you have assets that you need to protect beyond your insurance policies maximum liability coverage.

For example, if you have $500,000 of liability coverage on your homeowner’s insurance, but feel you need more coverage in the event of an accident at home, an umbrella insurance policy would be a good solution.

At the very least, umbrella insurance policies provide peace of mind. At the very most, they protect your assets if something significant arises.
If you think you need an umbrella insurance policy, here’s a good way to know for sure: combine your assets and savings to calculate your net worth. Next, look at the liability limits on your homeowners, vehicle and other insurance policies. Does the amount of liability on the policies fall below your net worth? If so, you should consider an umbrella insurance policy.

Examples of umbrella insurance policy coverage
Let’s say your usually sweet dog suddenly bites your neighbor when they stop by unexpectedly. Although your homeowner’s insurance should cover dog bites, if your neighbor’s wounds are serious and they decide to sue you, an umbrella policy would help cover costs and protect your assets.

Or, what if you’re liable in a car accident and the damages to property or from bodily injuries exceeds your vehicle insurance’s standard policy limit? You could use umbrella insurance to cover the additional costs.

Umbrella insurance can be beneficial for those who own rental property. If a tenant in a building you own is injured, for example, the policy can cover injuries within the limit. And it can also protect you if you’re sued for libel, slander or defamation.

What isn’t covered in umbrella insurance policies?
First, it’s important to note that you’ll need a commercial umbrella policy if you’re looking for extra coverage for your business. Personal umbrella policies won’t cover injuries to yourself or for damage you cause to your property.

How expensive is umbrella insurance?
Umbrella insurance is very affordable. In fact, many policies cost just around $300-$500 a year and offer $1 million in coverage. Some plans cover up to $5 million.  

How do I purchase umbrella insurance?
Roehr Insurance is a local, full-service insurance agency. Our team can help you choose the best umbrella insurance policy for your needs, so you’ll have peace of mind knowing all your valuable assets are protected.

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