Understanding Your Policy: Why Do I Need a Personal Umbrella Policy?

Understanding Your Policy Why Do I Need a Personal Umbrella Policy

If you live in Florida and drive a car, you are required to have car insurance. If you own a home and have a mortgage, you are required to have home insurance.  Though other insurance policies are necessary, you may wonder if you also need an Orlando & Central Florida Umbrella Insurance Policy.

What is an Umbrella Policy?

An umbrella insurance policy provides coverage above and beyond the typical things that auto and home insurance policies do not cover. If you are sued ― for negligence related to an automotive accident, an accident that occurs at your home, or even libel and slander ― and found legally liable for damages, an umbrella policy will pay any damages beyond what your other policies pay up to the amount of coverage you buy. Most umbrella insurance policies are worth $1 to $2 million. Umbrella insurance policies are relatively inexpensive compared to the amount of coverage they provide. According to the Insurance Information Institute, a $1 million personal umbrella liability policy usually costs between $150 and $300 per year.

Examples of Situations Where Umbrella Insurance Is Beneficial

Most umbrella insurance claims involve automobile accidents. If you are driving under the influence, texting and driving, or speeding and cause an accident that seriously injures or kills someone, it’s likely you’ll be sued. It’s also likely that if you’re found liable, you could face a huge judgment that far exceeds your auto insurance liability coverage. In these instances, an umbrella insurance policy would kick in and provide additional protection. Umbrella policies also protect against accidents that happen at your home.

Now that you understand the importance of a personal umbrella insurance policy, contact us at Newman Crane & Associates Insurance, (407) 859-3691. Our skilled team will work with you to create a policy that will protect you in our increasingly litigious society.