The Cheapest Insurance EVER!

Most people rarely want to talk about such things, but at UA, we get this question a lot…

What happens if I have a BIG Claim?

Life happens! We all know that. And today, more than ever before, there could be that off chance you can find yourself involved in a large claim where the lawsuit can easily reach hundreds of thousands of dollars. How do you protect yourself? We have some suggestions on the matter.

The first thing to consider is an Umbrella Liability Policy or Excess Liability Policy. This is one of the best ways to protect yourself against a potential large claim…  AND, dollar for dollar, it is the Cheapest Insurance Ever!  You can literally get MILLIONS of dollars of coverage for a few hundred dollars. Definitely worth the investment.

God forbid, if you are ever sued (fingers crossed that never happens to you), your standard homeowners policy or car policy will provide you with SOME liability coverage - paying for judgments against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may wish to have an extra layer of liability protection. That’s what a Personal Umbrella Liability Policy provides.

An Umbrella policy kicks in when you reach the limit on the underlying liability coverage in a Homeowners, Renters, Condo or Car policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1,000,000 Personal Umbrella Liability policy. The next million will cost about $75, and $50 for every million after that.

Because the Personal Umbrella Policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of Liability Insurance on your Car Policy and $300,000 of Liability Insurance on your Homeowners Policy before selling you an Umbrella Liability Policy for $1,000,000 of additional coverage.

The Umbrella Liability Policy gets it’s name from the concept that this policy comes down on top of your other policies, and “covers” them (and subsequently, YOU!)  Umbrella Insurance is “over-and-above” coverage.  An Umbrella policy doesn’t replace your Homeowners or Car Insurance, but it extends them to cover Liability claims in excess of the amount your “underlying” policies cover.

No one ever wants to “PLAN” on having a bad accident, and we certainly don’t want to scare anyone into worry. However, in today’s society, the amount that you could be sued for can easily run into the millions of dollars, so it’s better to be protected ahead of time.

If, for example, you own a pool, a trampoline or a dog, experts say you absolutely need umbrella insurance. If you own an edgy cat, collect guns, have a child who plays football, or tend to bump into things in the supermarket parking lot, you need umbrella insurance, as well!

Another benefit of an umbrella liability policy is that a good policy can actually provide you coverage for things that you don’t have coverage for elsewhere.  If you ever rent a Jet Ski or boat while on vacation, or borrow your neighbor’s scooter for a spin around the neighborhood, then you will benefit from knowing that often your Umbrella Policy can provide coverage for these exposures also.

If an individual decides to sue you after slipping on your sidewalk, being bitten by your shepherd, getting in the way of your 9th hole tee shot, or being sideswiped by your Chevy Suburban, their attorney will be looking for “deep pockets.”  Your assets, your earnings, and even your future earnings potential could be closely scrutinized.

If you own a home in Southern California, a sailboat, a chunk of Google stock, or just hold a college degree, you are well worth going after. The attorney will try to get the lion’s share of the settlement from other players, perhaps the crew who put down the sidewalk or the golf course’s architect, but he still will try to shake a few bucks loose from you. And while these dollars might not mean much in terms of the overall settlement, to you they could mean the loss of your savings, money out of your paycheck, or even the loss of your home in extreme situations.

Umbrella Liability Policies generally are written in increments of $1,000,000, and are surprisingly affordable.  Some policies cover legal expenses, and some do not.  Ask, and be sure to cover legal expenses if you can, because they can be exorbitant.

Every policy has exclusions, read them carefully and as always, be sure to contact a United Agencies representative for assistance. Agents are always happy to answer any questions you may have. Contact us now for assistance.