If you are like most people, you already have a boat, home, and auto insurance policy. But do you have umbrella insurance? While you may have conventional insurance policies, these coverages can only stretch as much when faced with significant liability claims. At FJP Insurance Agency Inc., we advise our clients to invest in umbrella insurance to protect their assets when significant liability claims knock on their doors.
What is umbrella insurance?
This coverage gives you extra liability protection when faced with significant claims exceeding the limit of the underlying policy. For instance, assume you have car liability coverage of $100,000. Suppose you are responsible for a car accident that causes bodily injury and property damage of $250,000.
Your car insurance will cover your liability up to $100,000. However, if you have umbrella insurance, it covers the $150,000 exceeding your car insurance limit. If you don’t have umbrella insurance, you must sell your assets and utilize your savings to cover this difference.
What does umbrella insurance cover?
Remember that umbrella insurance is liability coverage — it covers other people but not you and your family members. Umbrella insurance covers you when accused of:
- Bodily injury
- Property damage
- Personal liabilities, such as libel, false arrest, slander, and malicious prosecution
In addition, umbrella insurance covers legal costs, including attorney fees to process paperwork and settlement costs.
Who needs umbrella insurance?
The reality is that not everyone needs umbrella insurance. However, if your asset value exceeds your liability coverage, you should get an umbrella insurance policy ASAP. Besides, if you are at risk of being sued, umbrella insurance is the safety net that protects you from lawsuits.
- Are a high-net-worth individual
- Are a public figure
- Own a car, house, or rental home
- Own a dangerous pet
- Participate in high-risk hobbies
- Own a business
- Coach kids or youth sports
Are you looking for umbrella insurance in Illinois? You are in the right place. At FJP Insurance Agency Inc., we will analyze your current situation and help you to purchase umbrella insurance that meets your lifestyle, budget, and other preferences.