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What is Umbrella Insurance?

by | Jan 21, 2020 | Auto Insurance

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Umbrella Insurance: It’s Not Just for the Wealthy

There’s a big misconception that if you’re wealthy, with extensive assets, then you obviously will need a robust insurance policy with high liability limits. If you have a modest income, with only your home and vehicle to your name, then the liability insurance included in your auto insurance and homeowners insurance policy is enough.

That is not the case. You don’t need to be wealthy to find yourself being sued for far more than your net worth. Umbrella policies are designed to provide extra liability protection for the unexpected, regardless of your income and assets, to protect all your assets, and future income.

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Umbrella Insurance is There for the Rainy Days

Umbrella insurance is a special type of insurance coverage that protects you from lawsuits and claims that go beyond the limits or scope of your other liability insurance. It protects your assets and your financial outlook by extending the liability coverage on your homeowners, renters, auto or boat insurance when your limits are exhausted. It also provides coverage for claims that may not be covered by other liability insurance.

Umbrella Insurance Covers You Completely

Your liability insurance is there to protect you. When it comes to your auto insurance policy, the liability insurance is what pays out for the damages that the other driver faces if you’re responsible for a collision. Your liability on your homeowners and renters insurance does even more: not only does it pay for any injuries that someone may get while on your property, but it can also cover damage caused by your children and even legal fees if you or someone else on the policy is sued for causing bodily harm or property damage to someone else.

Obviously, your liability insurance is an important safety net, so have you ever wondered what would happen if you exhausted the limits of your policy?​

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Who Needs Umbrella Insurance?

Umbrella insurance policies are for everyone, particularly those who:

  • Have pets
  • Own a vehicle
  • Own rental properties
  • Entertain house guests
  • Perform volunteer services
  • Engage in any kind of activities with other human beings
  • Use social media or allow their children to post on social media
  • Own or rent watercraft, ATVs or other types of recreational vehicles

If any of these apply to you, then you may be at great risk for needing protection if you ever need to file a liability claim, or ever face a lawsuit not covered by your liability insurance.

 
Can You File for Medical Bankruptcy?

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

Filing An Appeal To A Health Insurance Company

Filing An Appeal To A Health Insurance Company

If your health insurance company refuses to cover a claim, you have the right to appeal the decision and have it reviewed by a third party. Your policy should outline how to appeal a denial.

Are Fertility Services Covered by Health Insurance?

Are Fertility Services Covered by Health Insurance?

Even if you live in a state that requires health insurance coverage for fertility treatments, there may be certain requirements that you have to meet to have services covered. For example, if you have unexplained infertility, you might only qualify for in vitro fertilization after a period of time or a specified number of in-vitro cycles.

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Why Do You Need Umbrella Insurance?

Life is unpredictable. Your generally friendly dog bites a stranger and causes an injury or emotional trauma. Your child posts something that is considered libel on a social media platform. You own a rental home and your tenant’s dog causes an injury and you’re being held legally responsible for injuries. You are walking down the street, accidentally bump into someone causing them to fall causing injuries.

These are just a few scenarios in which the liability coverage included in your homeowners/renters liability insurance coverage could pay out for damages incurred. But many of these policies are limited to $100,000 or $300,000 which may only be a fraction of what is needed in the event you are liable. Even if you are found to be 1% liable, you are still liable. Same situation with an auto collision. If you are found to be “at fault” and the injured party’s medical bills are greater than your liability coverage, how are you going to pay for above and beyond your auto policy liability amounts? If you are found “at fault”, you are responsible for all their pain, suffering, lost wages, damages, and medical bills. Your assets and future wages are/can be exposed in the event of a judgement.

Unfortunately, your existing liability coverage may not be enough, leaving you vulnerable to financial hardship if a settlement exceeds your liability limits. A personal liability insurance umbrella policy helps to bridge that gap by providing much needed extra coverage. This coverage is generally very affordable, and in some cases, it covers things not included in your other policies. Minimum coverage starts at $1 million, and that coverage can be increased by increments of $1 million.

Not only does an umbrella policy increase the limits of your existing liability policies, but it actually provides coverage for events not covered by your current liability insurance.

 

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How Umbrella Policies Work

Say that you’re in an auto accident. Fortunately, your injuries are mild and the damage to your vehicle is well within your auto insurance policy’s limits. Unfortunately, the car you hit was carrying executives from a large company, and their injuries and damages to the vehicle are significant.

It’s determined that you’re responsible for the accident, and the court rules that you have to pay for the executives’ medical bills, their lost wages and any other hardship that they might endure because of the collision. All of a sudden, your $300,000 auto insurance liability limit, which seemed so generous yesterday, is looking pretty paltry.

If you have an umbrella policy, that coverage will pick up where your auto liability insurance drops off. It’ll cover the amount that exceeds your auto insurance up to the umbrella policy’s limit.

 

How Much Coverage Do You Really Need?

 You’ve likely heard stories in the news of someone being awarded millions of dollars to compensate for pain and suffering and property damage resulting from a bad auto accident or an incident on someone else’s property. If you find yourself in an unexpected situation with only a $100,000 liability limit, then your financial future may be seriously jeopardized.

While it’s important to make sure that you don’t have more homeowners or auto insurance coverage than you need, liability insurance isn’t the place to cut corners or seek out the cheapest option. An insurance agent can help you determine how much coverage is right for you.

 

What Do Umbrella Insurance Policies Cover?

♦ Bodily injuries: Your policy covers the cost of damages to another person’s body, including medical bills and any other hardships.

♦ Property damage: The policy also covers damage or loss to another person’s physical property.

♦ Landlord liabilities: If you’re a landlord and someone is injured on your rental property and sues you, your umbrella policy would cover expenses arising from the lawsuit.

♦ Lawsuits under certain conditions: An umbrella policy can also provide coverage if you’re sued for slander, libel, malicious prosecution or mental anguish.

 

Getting Extra Protection with Nevada Insurance Enrollment

Umbrella policies are generally very affordable, making them a great option for Nevadans. Talking to one of our agents can help you identify weak points in your coverage and determine whether a personal liability umbrella policy is right for you. To learn more about this coverage or to find out how to add it to your insurance policy, contact us today.

Call for FREE Help
(702) 898-0554

↑ click to call ↑

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

Filing An Appeal To A Health Insurance Company

If your health insurance company refuses to cover a claim, you have the right to appeal the decision and have it reviewed by a third party. Your policy should outline how to appeal a denial.

Are Fertility Services Covered by Health Insurance?

Even if you live in a state that requires health insurance coverage for fertility treatments, there may be certain requirements that you have to meet to have services covered. For example, if you have unexplained infertility, you might only qualify for in vitro fertilization after a period of time or a specified number of in-vitro cycles.

Health Benefits of Good Oral Hygiene

As intimidating as gum disease and its associated conditions sound, the good news is that diligently brushing and flossing daily, along with regular visits to the dentist, is generally enough to keep the bad bacteria under control.

Can You File for Medical Bankruptcy?

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

Filing An Appeal To A Health Insurance Company

Filing An Appeal To A Health Insurance Company

If your health insurance company refuses to cover a claim, you have the right to appeal the decision and have it reviewed by a third party. Your policy should outline how to appeal a denial.

Are Fertility Services Covered by Health Insurance?

Are Fertility Services Covered by Health Insurance?

Even if you live in a state that requires health insurance coverage for fertility treatments, there may be certain requirements that you have to meet to have services covered. For example, if you have unexplained infertility, you might only qualify for in vitro fertilization after a period of time or a specified number of in-vitro cycles.

Health Benefits of Good Oral Hygiene

Health Benefits of Good Oral Hygiene

As intimidating as gum disease and its associated conditions sound, the good news is that diligently brushing and flossing daily, along with regular visits to the dentist, is generally enough to keep the bad bacteria under control.

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