The modern world is filled with risks. From car accidents to slip and fall incidents in the home, the possibility of being sued is a real possibility every person needs to take into account. Nearly everyone accounts for this risk by buying insurance. Personal umbrella insurance takes this concept to a new level.
Insurance is a staple of any financial plan these days. There is an inherent weakness with every policy, however. Let’s consider your car insurance. It covers you in case of a collision with another party. A typically policy might pay out up to $50,000 per claim with a total payout per year of $100,000 regardless of the number of claims.
Every insurance policy has a limit. This “policy limit” defines the maximum amount the insurance company will pay out on claims made against you and the policy. Claims can often exceed these limits in worse case situations, leaving you on the hook for any additional amounts due.
Personal umbrella policies are designed to address the shortcomings of policy limits. Umbrella policies cover liability claims in excess of the policy limits for your primary insurance. In our car accident example, the umbrella policy would pay any amounts due in excess of the $50,000 covered by your primary car insurance policy.
Umbrella policies are typically written in increments of a million dollars of coverage. This means you can purchase one million, two million or more in coverage in addition to your underlying policies. If you purchase a million dollars in coverage, for example, the policy would cover any liability claims in excess of your $50,000 car insurance policy up to $1,050,000.
Is purchasing a personal umbrella insurance policy a smart move for you and your family? Absolutely. You gain the peace of mind of knowing you are covered should things go very wrong and at a very low premium cost. Contact us today for a no obligation quote on a personal umbrella policy for your current situation.
These are just a few of the personal insurance issues that can create real problems for you. Call our office for a free review. Please contact us or give us a call to learn more. You can also request a quote if you’re ready to start on a policy. Valley oaks Insurance Agency is proud to provide insurance in Roseville, Sacramento, Lincoln, Granite Bay, Rancho Cordova, and Folsom, CA. We also serve other areas in the state.
The information shared in this blog is provided and written on an opinion basis and for informational purposes, they do solely represent the opinions of Valley Oaks Insurance.