Feb 27 2018

Umbrella Insurance — The Added Liability Protection You Didn’t Know You Needed

If you could get up to one million dollars in extra liability protection from $5 per week, would you? If you answered yes, then you’re in luck because that’s exactly what umbrella insurance can offer you! Let’s start with the basics — what is umbrella insurance? An umbrella insurance policy is an extra layer of liability coverage that protects you beyond the limits of your home or auto insurance policies.

Why would I need umbrella insurance?  

To answer this, let’s imagine a scenario: You’re driving home after a long day of work. The kids are in the backseat making too much noise and you turn back for just a second to quiet them down. The next thing you know, you’ve run a stop sign and collided with another car. The driver of the other car is a surgeon who, due to injuries sustained in the crash, is unable to work for three months. Not only are you responsible for their medical bills and the bills associated with the damage to both cars, but they’re also suing you for lost wages. While your car insurance policy offers liability coverage, you’re still on the hook for any remaining costs yourself.

Here’s another scenario: Your son got accepted to his top choice college, so you decide to celebrate by inviting his friends over for to your home for a pool party. Everything is going great until his friend slips and tears his ACL. He needs surgery, and to make things worse, this particular friend had received an athletic scholarship to his dream school. The injuries sustained at your home will prevent him from playing, and his parents are upset and decide to sue you.

In both of these scenarios, some of the bills and fees would likely be covered under your home or auto insurance policy, but only up to the limits of your specific policy — meaning you would be on the hook for the remaining costs — which, depending on the situation, could be hundreds of thousands of dollars. Could you foot those bills yourself? For most people, the answer is no. Luckily, you can add much more protection if you add on an umbrella insurance policy.

How do I know if I need an umbrella insurance policy?

The short answer is that anyone can benefit from this added coverage, especially in today’s increasingly litigious society. To assess your individual situation, think about the risks you face every day. Homeowners — do you have children or a dog? What about a pool, swing set or trampoline? Have you ever found the walkways around your home icy and dangerous after a winter storm? Do you enjoy hosting friends and family over for parties and events? And finally, do you think a small investment is worth the protection from potentially costly lawsuits? If you answered yes to any of these questions, you should consider an umbrella insurance policy. 

How do I get an umbrella insurance policy?

This part is easy! Contact your local insurance agent to ask about adding this extra coverage to your insurance plan. You’ll likely need certain underlying limits of coverage, which your insurance agent can help navigate.

Do you have enough insurance coverage to get you through all of life’s ups and downs? At Bearingstar Insurance, we know that you’ve worked hard for all that you’ve accomplished, and are here to make sure it’s all protected. With offices throughout Massachusetts and Connecticut, it’s easy to find a local agent to help with your insurance needs!

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