The amount of available insurance can feel exhausting, from auto to home to life to a disability, but one that is often overlooked and yet is incredibly important is umbrella insurance. Included with most of the insurance mentioned above policies is liability coverage that protects you from being responsible for the legal fees, medical bills, and other costs associated with a third party being injured in an accident you caused. Also known as excess liability insurance, umbrella insurance kicks in when your existing liability coverage has been exhausted. Therefore, think of umbrella insurance as a safety blanket that helps avoid financial ruin if an accident happens. If you do not have an umbrella insurance policy and your existing liability coverage is used, you’ll be on the hook for any overages, which could lead to financial ruin.
While umbrella insurance is useful for anyone, it is crucial for individuals that meet any of the following conditions:
- You have significant net worth or assets that could be vulnerable if sued.
- You own multiple properties.
- You frequently travel abroad or enjoy high-risk activities.
- You are a public figure and need to protect yourself from defamation lawsuits or could be an easy target to be sued.
- You own a pool, treehouse, trampoline, ATV, dog, or other similar items frequently used and could injure a visitor.
If you meet any of these statements, the next step is determining how much liability coverage you need. Add your current liability coverage together and subtract all your assets at risk. If the number is negative, that figure is how much umbrella insurance coverage you should buy.
To learn more about umbrella insurance, give Bingham Insurance Group in Braselton, GA call today – we’d be happy to help!
Many home and auto insurance policy owners in the Braselton, GA area are often asked if they want to add umbrella insurance to their portfolio. If you are wondering if it is a worthwhile investment, your local agents at Bingham Insurance Group have the answers.
When You are Found At-Fault, Your Home and Auto Insurance May Not Do the Job
Umbrella insurance is designed to provide higher liability coverage. Your home and auto insurance comes with a liability maximum that is intended to pay the injured party enough to handle their medical and living expenses for an injury or property loss due to an accident. However, if they are looking at the loss of a limb, a life-changing disability, or the resultant loss of income, they may be entitled to a larger payout. Your home and auto insurance will cap their payout at the maximum, leaving you open to a lawsuit. Many people perceive that a person living in a nice neighborhood or runs a successful business has a deep pocket to pick, making you more of a target after even a simple fender bender.
Umbrella Insurance Takes Over where the Other Drops Off
Umbrella insurance adds a larger liability limit, often in the millions. When one insurance policy tops out, your umbrella policy can cover the remaining balance of the claim. This can help you to keep your savings account intact or prevent the sale of your second home. Umbrella insurance is often an attractive addition to your insurance coverage when you own a business that is associated with higher liability risks. However, umbrella insurance will not cover an incident that is a result of illegal or criminal activities.
If you would like to learn more about umbrella insurance, give us a call at the Bingham Insurance Group serving the greater Braselton, GA area today.
Are you unsure about umbrella insurance? Do you need it? To be truthful, it can benefit everyone, but it may not be extremely necessary for everyone. Umbrella insurance, who then needs it then? Bingham Insurance Group in Braselton, GA can shed some light on the subject.
What is Umbrella Insurance Exactly?
To put it simply, it is just an add on insurance policy onto what you already have that protects you in case you have a lawsuit filed against you. It can help as well in court costs and extra costs that your regular insurance policies may not cover. It can even include in cases where you are sued in slander or defamation cases. Here are some examples of where umbrella insurance covers you.
Scenario 1. You get into a car accident that involves extensive injury and damage to another person beyond what your auto insurance can cover. Plus, they file a lawsuit against you. Umbrella insurance has got you covered.
Scenario 2. Someone gets hurt on your property. Your homeowner’s insurance has you covered, but then they sue you. Umbrella insurance can help.
What umbrella insurance does not cover is:
- Personal property damage
- Criminal damage
- Contract worker injuries.
Who Needs It?
It is recommended that umbrella insurance represents a sensible investment for anyone who possesses anything of value. But who would benefit the most? Who needs it? What if you rent a home or an apartment and travel by bus? Would umbrella insurance benefit you? Umbrella insurance may be a benefit to you if you:
- Own/rent cars, boats, and other vehicles
- Travel by driving frequently
- Own dogs or exotic animals such as raccoons, alligators, snakes, etc.
- Have a teen driver.
- People that often host guests in their home or on their home property
- Owners of rental properties
- People with jobs that report on other people’s lives.
- Youth sports coaches
- Own weapons and guns
Most of these reasons may not make sense. What if your pet is as sweet as pie and wouldn’t hurt a fly. Animals are always unpredictable. What if sweet Fido turns grouchy one day due to a hidden illness and bites someone? They could sue you. Umbrella insurance will not sound foolish then. If umbrella insurance is curious to you, contact us at Bingham Insurance Group. One of your local Braselton, GA, representatives can help inform and set you up with a policy that works for you.
Insurance policies, whether they are for home or auto, come with predetermined caps on what they will pay out when there is an accident. Say you have a minor fender bender with minor injuries and you are found to be at fault. Your auto policy will cover the repair costs and medical expenses of the injured party. But not all accidents are minor. Also, the injured party can sue. It’s easy to see how mounting medical costs and legal fees can quickly max out your current policy. This is where umbrella insurance helps. The team of agents at Bingham Insurance Group work with residents throughout the Braselton, GA area. They can help ensure that you have the coverage you to need to keep you safe.
Accidents happen every day. When your basic policy has reached its payout limit, umbrella insurance goes into effect to handle the excess expenses. Without it, you will be responsible for any expenses over and above your policy cap. Umbrella policies financially protect your assets. For example, if someone is involved in an accident on your property and you are found negligent, they have the right to sue. The legal fees and medical expenses can be large. If your home insurance policy pays $250,000 and their expenses are $400,000, you will be responsible for the additional funds. If you have an umbrella policy, however, when the home insurance policy is exhausted, it will go into effect and cover the additional expenses. A unique feature of umbrella policies is that they will also cover libel, slander, and invasion of privacy cases. This can protect your assets during a critical period.
In the Braselton, GA area, the team at Bingham Insurance Group are ready to assist you. Come by the offices and learn more about the true value of umbrella insurance policies.