How does Umbrella Insurance Help?
Umbrella insurance policies are designed to provide extra liability protection to Florida residents than that which is provided by standard insurance policies. This is especially important if you get sued and your current policies do not provide enough liability coverage to cover the costs of the lawsuit. It’s also why you should talk to a representative at The Wurzel Agency in Oviedo, FL, so we can sit down and analyze the amount of protection you need to protect your assets fully.
An umbrella insurance policy protects your finances and assets in the following manner. Let’s say you have a homeowner’s insurance policy that provides up to $300,000 in financial protection in case someone gets injured on your property, but you get sued for ten times that much. If you lose the lawsuit, you would be personally held liable for the additional 2.7 million. In a worst-case scenario, you may have to sell off most, if not all, of your assets and liquidate your bank and investment accounts to pay off a judgment.
Umbrella insurance policies typically provide coverages of between one and twenty million dollars. If you lose the lawsuit in the above scenario, the umbrella policy will kick in and cover the additional $2.7 million in damages. You do not have to sell assets or liquidate your accounts to pay it yourself.
There are minimum requirements you must meet in your other liability policies in order to qualify for an umbrella policy. In Florida, you must already have auto or property liability coverages in place. The minimum amount of coverage these policies must have to qualify for additional coverage through an umbrella policy are:
- Auto: $250/$500 liability coverage to cover injuries in an accident
- Property: $300,000 to cover the costs of someone getting injured at your home or on your property
Determining the right amount of coverage you need takes a seasoned insurance representative like those at The Wurzel agency in Oviedo, FL to figure out. Call us today so you can get the umbrella insurance coverage you need.