Why You May Need Umbrella Insurance

Why You May Need Umbrella Insurance
June 6, 2019 dtric2

There are many types of insurance products to protect you in all facets of life, including homeowners/property, renters, auto and life.

Personal umbrella insurance is a specific insurance product that “covers” your assets from liability in the event of a devastating loss.

Umbrella insurance is excess liability insurance coverage that’s designed to help protect your assets and your family’s future from major claims and lawsuits. As an umbrella protects you from the rain, umbrella insurance coverage can help you weather unexpected financial storms. Umbrella insurance provides another layer of protection once your standard liability coverage reaches its limit.

Reasons You May Need Personal Umbrella Coverage

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Umbrella coverage can be used to protect your personal finances and assets in the event of a catastrophic loss. Without umbrella coverage, you may have to pay out-of-pocket for any of the costs below that are beyond your homeowners or auto insurance limit:

  • Your standard auto insurance liability limit may be exhausted if you are at fault in an auto accident where you destroy another vehicle and/or other property.
  • Your homeowners insurance liability limit may be insufficient to cover medical and other costs related to a guest suffering from a serious fall at your home, or being bitten by your pet.
  • A tenant files an expensive suit over an injury sustained while renting your property.
  • You file a suit against someone and in turn are sued for wrongfully, or maliciously, prosecuting that individual.

How much umbrella coverage do you need to purchase?

Umbrella coverage is a cost-effective way to protect your finances from expensive litigation. It is recommended that everyone have at least a $1 million umbrella policy to provide liability coverage beyond the limits of their auto and homeowners insurance policies, even if they have less than $1 million in assets. In the rare event you are sued, you could be forced to pay a legal judgment or settlement based on your current assets and future earnings. An umbrella policy can also pay for legal defense costs, which can quickly add up during litigation.

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Start by considering coverage equal to your assets that would be at-risk, including your home and financial savings. Ask yourself what coverage amount would give you peace of mind. Coverage limits start at $1 million at a minimal cost.

Call to speak to one of our local licensed agents about whether you need umbrella insurance and the recommended amount to financially protect you and your family! Just call 92-DTRIC (923-8742) or 1-877-923-8742 (Neighbor Islands toll free) to get started.  You can also request a homeowners quote online by clicking here.

Hawaii Home Owners Insurance

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