Most residents in the Mayville and West Bend areas enjoy the small-town experience that our communities afford. While there is much to be loved about the area we call home, even residents of small towns like ours are at risk of lawsuits and major losses. Home and auto insurance can provide some protection, but the limits may fall short of paying for a million-dollar judgment.
Unfortunately, well-meaning people are often forced to give up everything they own to pay for damages caused by unexpected accidents. An umbrella policy can help minimize your risk of major loss by providing added protection when you need it most.
What Could You Lose?
It stands to reason that a wealthy person with significant assets might have a lot on the line in a lawsuit. However, the average middle and upper-middle class family could also be at risk of financial disaster if found liable for a major loss. In addition to liquidating your savings and seizing valuable assets, a court may also order garnishment of your wages and any future inheritance until you satisfy your liability. In a million-dollar lawsuit, you might be responsible for a half-million or more out of your pocket without the right coverage.
Understanding Umbrella Insurance
Umbrella insurance is a supplemental policy that is purchased in addition to your existing coverage. When you are sued or a major claim is made against you, umbrella insurance picks up where your auto, home, renters, or condo insurance leaves off. It can conform to provide coverage for nearly any type of liability you already have coverage for, as well as some that you do not.
Umbrella insurance is typically sold in $1 million increments. The first million is often available for less than $200 per year, with additional coverage available for as little as $75-$100 per million. Considering it has the potential to shield you against financial ruin, adding umbrella insurance to your portfolio hardly seems like a difficult decision.
What You Need to Know
It is important to note that umbrella insurance should not be confused with excess liability coverage, the latter of which only extends the value of the coverage on your primary policies. Instead, a true umbrella insurance policy will also provide broadened protections beyond that which is covered under your standard insurance. Examples include:
- False arrest
- Damages you are liable for while traveling abroad
Also, insurance companies typically only issue umbrella coverage if your existing liability coverage meets certain requirements. Though every insurer is different, you will likely be required to carry at least:
- $300,000 or $500,000 homeowners liability
- $250,000/$500,000 auto bodily injury liability OR
- $300,000 combined single limit (CSL)
Shopping for Umbrella Insurance
When shopping for coverage, it is always wise to start with an independent agent at Mayville Insurance. Our experience with supplemental liability protection means that we can help you determine exactly how much coverage might be right for you. We can also answer any questions you may have and help you find ways of capturing additional savings, such as by purchasing your umbrella and homeowners policies from the same carrier.