Capital Insurance Group: Extend Your Coverage with Personal Umbrella Insurance
At Capital Insurance Group, an integral part of our risk assessment is recommending how to best address your specific exposures and close the gaps in your insurance program so that you minimize your risk. This involves carefully looking at your liability limits on your auto and homeowners policies to ensure you are well protected in the event of an accident or injury in which you are found responsible. It also means evaluating your need for personal umbrella insurance, particularly important in today’s litigious environment where multi-million-dollar lawsuits are not uncommon.
Why You Need Umbrella Insurance
A personal umbrella policy is designed to step in once the primary limits on your insurance are exhausted. For example, let’s say you have an auto policy with liability limits of $300,000. You’re in a serious accident where the other party is killed or seriously injured and a lawsuit is filed for medical expenses, loss of income and damages. In this type of catastrophic loss, $300,000 may well not be enough. With personal umbrella insurance, you can purchase limits of $1 million, $5 million, $10 million and even more depending on your net worth and assets. This will enable you to fill in the gap between the limits on your auto insurance and that offered by an umbrella policy. With a $1 million umbrella policy, you would have a total of $1.5 million of liability insurance. Keep in mind for that extra coverage, you won’t be paying that much.
While 85% of umbrella insurance claims involve car accidents, the policies offer protection against accidents that occur at your home, too. For instance, this coverage would kick in after your home insurance pays for liability damages in the event someone falls down your stairs or your balcony collapses during a party and you are sued. Many people opt for an umbrella policy because they have a pool or a trampoline on their property and fear the consequences of a child getting injured. Then there’s coverage for incidents you may not have even considered, such as accidents while you’re on vacation and have rented a boat or jet ski.
Another important feature of umbrella insurance is protection in a lawsuit against you for slander or defamation of character, or for decisions you might have made as a volunteer member of a nonprofit board.
Don’t risk your retirement funds, investments, savings and even your future earnings to pay off a settlement in the event of a catastrophic loss. Talk to Capital about getting extra protection with an umbrella policy.