You know the drill – anything valuable to you should be covered by insurance. From your house and car to your boat and RV, you’ve worked hard to get the right policy for all your liability needs. There’s just one problem, though: You still might not have enough coverage. If someone sues you for every penny you have, will the liability limits on your insurance policy be enough to pick up the tab, or will you be left holding the bag? Nearly anything you own could be at risk, from savings accounts and college funds to your assets and personal income. Umbrella insurance is an extra layer of protection that provides security for your finances when you need it the most.
Who Needs Umbrella Insurance?
There is a misconception that umbrella insurance is only for the rich since they own many assets worth protecting. The truth is that umbrella insurance is for the working family, too, whether they have spent many years saving up for a comfortable retirement or still have many years of steady employment income ahead of them. Consider the following example:
A husband and wife move to Mayfield to raise their three children. After receiving a small inheritance from a parent and saving for the first 20 years of their careers, they accumulate more than $250,000 in net worth, a significant education fund for the kids, and still have another 20 years of income ahead of them. As they prepare to send their first child off to college, they are hit with a lawsuit after hitting and severely injuring the driver of another vehicle on a cold, snowy night. Since the driver is no longer capable of working, he sues the family for the cost of medical bills, emotional trauma, and decades of future lost income. With the limits on their auto insurance liability policy quickly exhausted, the family is forced to liquidate college savings, sell their boat, and dip into personal savings to help pay the settlement. Not to mention, they spend many years providing the injured person with additional payments from their personal income. Just like that, years of dreaming, saving, and planning for the future are washed away.
What would you do if you had to face a million-dollar lawsuit? Would you prefer to take a chance on your future, or enjoy the peace of mind in knowing an umbrella policy will extend the liability limits on your personal insurance policies?
How Umbrella Insurance Works
Umbrella insurance is purchased as a separate policy in addition to your standard coverages. If you need to file a liability claim, your auto, homeowners, RV, ATV, boat or other liability insurance coverages will serve as your first line of defense. Once the limits on those policies reach their maximum payout, umbrella insurance will begin covering the balance of your obligations.
You might need to use your umbrella insurance in many different circumstances, including:
- Claims of slander, libel, or defamation of character
- Liability claims while traveling abroad
- Personal injury claims occurring on your personal property
- Loss or damage to another person’s personal property
- Injuries or losses sustained by you, your family member, or your pet outside your home
- Injuries or losses you cause when using your RV, boat, or other ATV
Here at Mayville Insurance, our number one concern is safeguarding your family against a disaster that could threaten your financial future. That is why we offer affordable umbrella insurance that fits your individual needs. Though policy limits start at $1 million and additional coverage is available in million-dollar increments, umbrella insurance is a surprisingly affordable addition to your existing coverage. Talk to an agent today to find out how affordable peace of mind can really be.