How Umbrella Insurance Can Provide Needed Protection at a Low Cost

How Umbrella Insurance Can Provide Needed Protection at a Low Cost

Umbrella InsuranceWhen it rains it pours…at least some of the time and when it does, you need your umbrella. Sometimes, life can hand you some devastating circumstances that you may never expect or imagine, but when they strike, can flood you with financial loss if you don’t have the right type of insurance protection. Imagine having all of your assets, including home, savings, and investments completely washed away because of a devastating accident, simply because you were not prepared. Find out how umbrella insurance can provide needed protection at a low cost.

Do You Need an Umbrella?  

Everyone needs an umbrella, so the real question is determining just how much umbrella coverage best represents your financial assets and budget. Umbrella insurance is sometimes referred to as “excess” liability insurance since it only kicks in AFTER the liability limits of your primary insurance policy (homeowners, auto, commercial, etc.) have been exhausted. Typically an umbrella policy is thought of as that cushion for accidents that are catastrophic in nature that could result in lawsuits with judgments exceeding $1 million.

Envision having an OK auto insurance policy with $500,000 limits of liability and causing a tragic auto accident that results in the death of two people. Obviously, your auto limits of liability have been exhausted and now you are faced with a judgment in the millions. Without an umbrella policy in place, you will be held liable for any and all costs above the $500,000. Do you have this kind of money and/or assets to pay for the difference or will you be faced with total financial destruction? This is why you need an umbrella!

Some Important Considerations of an Umbrella Policy

  • To determine how much coverage you need for your umbrella, it is recommended you assess the total value of your assets in addition to your estimated/probable future earnings. This would include the value of your savings account, investments, home, auto, retirement, and any inheritance.
  • Before an umbrella policy can be set in motion, you must have a current primary insurance policy with a specified amount of liability coverage. This amount could be the minimum mandated limits of liability or some other amount. Contact your local Oklahoma independent insurance agent to discuss this further.
  • If you have a current ATV, motorcycle, or watercraft insurance policy then your umbrella policy may provide further liability coverage on top of those policies. Address this type of situation with your local OK independent insurance agent to confirm your coverage on any of these insurance policies in question.
  • Ordinarily, a single umbrella policy will cover all of your family members living in your home.
  • Umbrella insurance is inexpensive in relation to the protection you are afforded. Peace of mind does not come with a high price tag.
  • Umbrella insurance is for people of all income levels. Keep in mind that even if your don’t have a job, you could still be held responsible to pay for any damages that are awarded regardless of what you have. This could mean having your future wages garnished when you do have a job. All assets are up for grabs when you don’t have the protection of an umbrella.

When it Rains, Make Sure You Have Your Umbrella

If you don’t have an umbrella insurance policy or have questions regarding the benefits of an umbrella, contact us at 918-341-6081. This type of insurance can protect you, your assets, and your future for a nominal fee. Don’t let what you have worked so hard for get washed away. Grab yours today!





About the Author:

Leave A Comment