Liability insurance helps protect you against expensive lawsuits, but do you know what would happen if your financial responsibility and litigation fees exceeded the limits of your insurance coverage? In a real-world scenario, it could be very costly to you, requiring out-of-pocket compensation from your personal income and assets to compensate victims for excess damages. At Midwest Insurance Solutions, we help clients obtain supplemental liability protection with an umbrella policy that can extend coverage by as much as a million dollars or more.
Why Would You Need So Much Coverage?
Umbrella policies come with very high coverage limits for a reason: Some lawsuits cost more than others. Whereas a typical auto insurance policy would be enough to cover the damages caused by a small fender bender, a major pileup could result in years of litigation and multiple judgments and settlements. When there are several injuries, extensive property damages, or even fatalities involved in a lawsuit, the costs can quickly soar to seven figures – money the average person does not have to spare. That is why we often recommend umbrella insurance not only to wealthy clients, but also to individuals who may be at risk of losing future income, inheritance, or years of savings due to litigation.
What is an Umbrella?
Umbrella insurance is a type of policy that is used as a fail-safe when other liability coverage is insufficient to cover a loss. It kicks in once the limits on your homeowners, renters, condo, or auto insurance liability run dry. Without it, the excess damages would be your personal liability. With an umbrella, you can minimize the risk of financial ruin due to an expensive lawsuit.
A typical umbrella insurance policy can provide supplemental coverage for a number of liability-related losses and expenses – including some that may not otherwise be covered by one of your existing primary insurance policies. Examples include:
- Property damages
- Bodily injury
- Accusations of libel, slander, and defamation of character
- Landlord liability
- Rented watercraft liability
- Liability with traveling abroad
- And more
Getting Umbrella Coverage in Iowa
When you apply for an umbrella insurance policy, start with your independent insurance agent first. At Midwest Insurance Solutions, we can search and compare coverage options and rates from multiple insurers to help you find the right value and fit. Next, we will review the requirements of coverage, which may correlate to your existing primary liability limits. Often, insurers require a minimum amount of auto and homeowners liability coverage before issuing an umbrella policy. If your limits are too low, we can help you bring them up to the standards of your umbrella carrier.
Finally, we can help you decide how much umbrella coverage is right for your family. Most umbrella policies are sold with coverage increments of $1 million. The coverage is generally very affordable considering the high limits, and the cost ratio lowers with each additional million in coverage added to the policy.
Should You Get Umbrella Insurance?
If you do not have umbrella insurance, talk with an agent to determine if it could be right for you. Even an out-of-court settlement could be enough to wipe out all of your assets if you are unprepared for a major liability.
To find out more about Iowa umbrella insurance options or to request your free quotes, contact our office today.