Umbrella Insurance Provides an Extra Layer of Protection

Do you ever wonder if your family has enough insurance to cover a large insurance claim against you? And do you know where the money would come from, if you weren’t adequately insured?

The answer to these questions comes from insurance agents who increasingly recommend a personal umbrella policy, which kicks in when a policyholder reaches the limit on the liability coverage in their home or auto policies.

Consider the risk in the following scenarios:

  • Your teenage son is in a car accident and you get sued for $1 million.
  • A neighbor is injured in your swimming pool.
  • A passerby trips and falls on the sidewalk at your house.
  • Your dog bites a friend’s child.
What’s My Exposure?

Today, anyone can be sued, and million-dollar judgments are becoming more common. Alarmingly, any amount exceeding your standard liability policy would fall to you. In order to cover the costs, you could be forced to use money from your current assets, such as savings accounts, 401(k)s or even your home. Your future earnings could be in applied as well.

So, while these types of catastrophic events are unlikely, insurance companies offer umbrella policies for customers who want to protect their assets and feel more secure.

Calvista Insurance offers AARP Umbrella policies with $1 million, $2 million and $5 million in coverage. Since these types of events are rare, the umbrella insurance is relatively affordable. An annual policy typically costs from $200 to $600 for the first $1 million of insurance.

How Umbrella Insurance Works

If there is a covered liability claim under your auto or homeowner’s policy and the dollar amount of the judgment is greater than the coverage limits you have purchased on those policies, the umbrella policy goes into effect. Certain limits must be met on your auto policy before you can purchase an umbrella policy.

The big question is often: How much coverage should I carry? The answer usually depends on your net worth. Counting up your home value, stocks, mutual funds, and retirement accounts is the first step.

Umbrella insurance policies can vary depending on your situation and your individual needs. Call our office at 1-831-637-7766 to learn if personal umbrella insurance is right for you.

Get a Quote or call for a quote at 831-637-7766