What is Umbrella Liability Insurance and Why is it Important?

Umbrella liability insurance is a type of insurance coverage that provides additional liability protection beyond the limits of your existing home, auto, or other primary insurance policies. It acts as a safety net, offering an extra layer of financial security in the event of a major claim or lawsuit that exceeds the limits of your primary policies.

If you do not have umbrella coverage and want to learn more about its benefits, speak with our Saline insurance professionals at Hartman Insurance today.

How Umbrella Insurance Can Help

The importance of umbrella liability insurance lies in its ability to safeguard your assets and future earnings from devastating financial losses resulting from a costly liability claim. Below are some key reasons why you should consider umbrella liability insurance.

Increased Liability Coverage

Standard home and auto insurance policies typically have liability limits that may not be sufficient to cover significant accidents or legal claims. An umbrella policy provides higher coverage limits, ranging from $1 million to several million dollars, offering you substantial protection against unforeseen incidents.

Protection Against Lawsuits

In today’s litigious society, lawsuits can arise from various situations, such as a serious car accident, a slip and fall on your property, or an injury caused by your pet. If you are found legally liable for damages beyond the limits of your primary policies, an umbrella policy steps in to cover the excess amount, shielding your assets from being seized to satisfy the judgment.

Worldwide Coverage

Umbrella liability insurance typically provides coverage worldwide, meaning you are protected not only in the United States but also during international travel. This is particularly valuable if you travel frequently or own property abroad.

Legal Defense Costs

Umbrella policies often cover legal defense costs, including attorney fees and court expenses, even if you are not found liable. Legal fees can quickly escalate during a complex lawsuit, and having an umbrella policy can save you from significant out-of-pocket expenses.

Protecting Future Earnings

Without adequate liability coverage, a judgment against you could result in wage garnishment and seizure of assets, affecting your current and future earnings. An umbrella policy helps protect your financial future and ensures you can maintain your standard of living even after a significant liability claim.

Considering the extensive coverage it provides, umbrella liability insurance is relatively affordable. The premiums are usually lower than those of primary policies, making it a cost-effective way to increase your liability protection significantly.

Our Saline Insurance Team Can Help

Accidents can happen at any time, and the potential financial repercussions can be overwhelming. Knowing that you have an umbrella liability insurance policy in place offers peace of mind, allowing you to focus on your life and daily activities without constantly worrying about financial ruin in the face of a catastrophic event.

Having umbrella liability coverage is a prudent and valuable investment for families seeking greater peace of mind and financial security. Hartman Insurance can help you explore your options, so please contact us today.