Umbrella Insurance

For high-net-worth individuals or those with considerable assets, umbrella insurance offers extra peace of mind that helps protect your belongings and loved ones should an accident happen. Think of umbrella insurance as a rainy day fund that kicks into gear when the liability limits on your existing insurance policies such as homeowners, renters, or auto have been exhausted. For example, let’s say that you are in a fault car accident that leaves two other motorists injured. When this happens, your existing auto insurance policy’s liability limits will pay for the injured parties’ medical bills up to your policy limits whether that is $250,000, $500,000, $1,000,000, or a different sum. Once your maximum coverage amount has been reached, you are responsible for the difference which can lead to complete financial ruin. Luckily, umbrella insurance protects you from having to liquidate your personal assets by offering an extra layer of liability coverage on top of your existing policies.

While an umbrella insurance policy can make sense for anyone, it is particularly useful to those that have significant assets whether that is in the form of retirement accounts, investment savings, or property ownership. With that said, other use cases include hosting frequent parties where the risk of a slip and fall incident or similar is higher or owning a dog that is known to be less friendly towards strangers. Given the relatively modest cost of an umbrella insurance policy, there are very few reasons not to have one.

At the L & S Agency Inc., our talented team of friendly and professional insurance experts are ready and willing to answer all your questions about umbrella insurance policies.