Personal Umbrella
Personal Umbrella Insurance is critical to your insurance plan
Would your current insurance coverage be sufficient if you were deemed negligent or liable for someone else’s bodily injury or death?
Umbrella insurance, offered by Five Star Insurance Agency, serves as a standalone liability policy that extends additional coverage beyond the limits of your existing homeowners and auto insurance policies.
Life’s uncertainties highlight the importance of being prepared for unforeseen events. With umbrella insurance from Five Star Insurance Agency, you gain additional coverage that goes the extra mile to safeguard your assets.
Umbrella Insurance example scenario
Understanding Umbrella Insurance and how it operates in real-life scenarios can provide clarity.
Imagine you’re held responsible for a multi-vehicle car accident, resulting in damages and injuries totaling $850,000. However, the liability coverage on your Auto policy is only $300,000.
In this scenario, your insurance would cover only $300,000 for the entire accident, leaving you accountable for the remaining $550,000 out of your own pocket.
With an Umbrella policy from Five Star Insurance Agency, you can extend your liability coverage beyond the limits provided by your underlying policies. This means that the Umbrella policy would step in to provide additional liability coverage above the $300,000 limit of your Auto policy, up to the limit you choose for your Umbrella policy (typically ranging from $1 million to $5 million in coverage).
In essence, an Umbrella policy ensures that you aren’t left financially responsible for the remaining $550,000 in such situations.
More examples…
- Your dog bites a neighbors child
- Fire at your condo spreads to other units
- Accident at your rental property
How much does Umbrella insurance cost?
Umbrella insurance holds significant appeal and is often regarded as a sensible choice due to its generally low cost.
Most insurance carriers offer coverage starting at approximately $150 per year. While the cost of your policy may increase depending on the number of cars and homes it needs to overlay, it typically remains a fraction of the total coverage provided. Moreover, the bulk of the risk is assumed by the insurance company.
Even if your premium were $300 per year, the insurance company is obligated to provide coverage of at least $1,000,000. This presents exceptional value, particularly considering the litigious nature of our society. Therefore, it’s a consideration that everyone should ponder.
It only takes one accident to potentially bankrupt yourself
If you find yourself lacking sufficient coverage, especially in a world where medical expenses are skyrocketing, it’s prudent to consider purchasing Umbrella insurance.
To initiate your quote, Five Star Insurance Agency is here to assist you. Simply head over to our quotes page or give us a call and our team will diligently survey the marketplace to identify the best coverage options available.
It’s worth noting that many insurance carriers stipulate that you must have at least your auto insurance policy with them to qualify for their umbrella coverage. However, stand-alone umbrella policies are also available for special situations.
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