Most people understand the importance of homeowners and auto insurance, but fewer are familiar with personal umbrella insurance. An umbrella policy is designed to provide an additional layer of liability protection above certain underlying insurance policies.
For households with growing income, savings, investments, property, or other assets, umbrella coverage may be worth discussing.
Serious Liability Claims Can Become Expensive
Imagine causing a major automobile accident involving several vehicles and significant injuries. Consider someone being seriously injured on your property. Situations like these can result in medical expenses, lost wages, legal costs, settlements, or judgments that may exceed the liability limit of a standard policy.
An umbrella policy may provide additional protection after the applicable underlying policy limit has been exhausted, subject to the terms and exclusions of the policy.
Umbrella Coverage Is Not Just for Millionaires
There is a common misconception that umbrella insurance is only appropriate for extremely wealthy households. In reality, liability exposure can affect families at many income levels.
Home equity, savings, investments, future earnings, and other financial resources may all be important considerations when evaluating liability protection.
Certain Lifestyles Can Increase Liability Exposure
Households may want to discuss umbrella insurance if they own multiple vehicles, have teenage drivers, own rental property, entertain frequently, have a swimming pool, own recreational vehicles, or simply want additional liability protection.
The appropriate solution depends on the household and the insurance policies already in place.
Your Underlying Coverage Matters
Umbrella insurance generally works in conjunction with underlying policies such as auto and homeowners insurance. Insurance companies may require certain minimum liability limits on those policies before umbrella coverage applies.
This makes it important to review the entire insurance program rather than purchasing one policy in isolation. Rankin Insurance Group offers a range of insurance coverage options for individuals, families and businesses.
Protecting More Than Property
Insurance is often thought of as protection for physical property, but liability protection can be equally important. A serious lawsuit can affect years of financial planning.
Rankin Insurance Group can help individuals and families throughout the Lake Norman region review existing liability limits and determine whether umbrella insurance should be considered as part of their overall insurance strategy.