Insurance Is a Product that Can Save You When No One Else Can

Insurance is a highly advantageous product to have in the United States because it is such a litigious society. An insurance company in Davie, FL can offer you several types, including homeowners’ insurance, renters’ insurance and umbrella insurance. Let’s see if umbrella insurance is something that would be useful to you in your situation.

Why Do You Need Umbrella Insurance?

You have limits on your auto insurance and homeowner’s insurance policies, but what if a judge determines that you are responsible for another person’s claim that is worth millions of dollars? 

Your auto insurance or homeowner’s insurance policies may not cover the entire amount. When this happens, the insurance company will be responsible for paying the amount that it agreed to pay when you purchased your policy. You will be responsible for paying the amount that is left over. If you have significant assets, a judgment against you could wipe out your assets and all of your savings. This is what umbrella insurance was created to prevent. 

What Is Umbrella Insurance?

Umbrella insurance gives you additional insurance coverage that goes beyond the limits of your auto or homeowner’s insurance policies. If you are responsible for causing a collision that resulted in bodily injuries and property damages, your umbrella insurance policy will cover what your auto insurance policy does not pay. 

How Does Umbrella Insurance Work?

Let’s look at an example. You are driving one day and you run into another vehicle. The people in the car are seriously injured, and the vehicle is noticeably damaged. It will require $25,000 to repair the vehicle, but that is not the end of the story. The driver and passengers’ medical bills amounted to $275,000! On top of that, the other motorist’s arm was broken, so she will not be able to work as an orthodontist for several months. Her lost wages amounted to $200,000, and she sues you for this amount. 

When you add up all of the damages, the total amount comes to $500,000, but your auto insurance policy only covers you for $300,000. That leaves a balance of $200,000, and you will be personally responsible for it. 

If you have an umbrella insurance policy, your auto insurance policy pays the first $300,000. Then, your umbrella insurance policy pays the remaining $200,000.   

Who Needs an Umbrella Insurance Policy?

People with a large number of assets or a higher-than-average chance of being the subject of a lawsuit would benefit from an umbrella insurance policy, such as the following:

You are in the public eye.

You play sports and can injure others easily.

You post reviews for businesses regularly. 

You are on the board of a nonprofit organization.

You like to host parties at your house.

You are a coach for your children’s sports teams.

You have a newly licensed driver in the house.

You own rental property.

You own guns, trampolines, pools or dogs.

You travel outside of the United States and are concerned about liability lawsuits.

You have a significant amount in savings or assets.

You own property. 

Increase Your Insurance Coverage Today.

At Chaisteli Insurance Group, we have the insurance products that you need to protect your assets and your family. We will even offer you a free quote on our website. If you would like to discuss your options, send us a message. You can also call us. Our helpful staff will answer all of your questions.