Umbrella Insurance Boca Raton
An umbrella insurance policy is extra liability insurance coverage that goes above and beyond the limits of liability of the insured’s home, auto or other liability insurance coverage combined in order to provide an extra layer of coverage to ensure that someone cannot touch your personal assets. It applies in the event that a judgment or a finding of liability against the policyholder or other covered loss exceeds the limits of liability for that person’s other liability insurance coverage. For example, if you cause an auto accident in which multiple people are involved and, as a result of your actions, there are $1,500,000 in damages to other motorists and their vehicles, then umbrella liability insurance would kick in to cover whatever portion of those damages are not covered by your auto insurance policy. So, if the limits of your auto insurance are $100,000 in this scenario and you have umbrella policy with an additional $2,000,000 in liability coverage, then the umbrella policy would kick in to cover the $1,400,000 of damages that are not covered by your auto insurance policy. This way, you do not have to declare bankruptcy in an attempt to keep the injured motorists from taking your house or garnishing your paycheck or seizing your car.
An Extra Layer of Protection
for You and Your Family
Umbrella insurance policies do not cover physical property damage to the policyholder’s possessions or belongings. This means that damage to your own home or vehicle as a result of a storm likely would not be covered by this policy. If someone steals everything in your house or a hailstorm totals your car, umbrella liability insurance policies likely will not step in to provide coverage for your losses related to that event. Instead, the umbrella liability insurance would cover you if you caused losses to someone else. For example, if a fire were to break out in your home as a result of something negligent that you did, causing multiple other houses on your block to also go up in flames, your neighbors may all sue you for their losses as a result of the fire that you caused. In that instance, umbrella liability insurance likely would help to cover the damages that you caused that exceed your other liability insurance coverage. It would be particularly beneficial in such a scenario because the amounts of the claims your neighbors may make against you would rapidly exhaust whatever insurance coverage you have in the absence of umbrella liability insurance coverage.
Protect Your Assets with an Umbrella Insurance Policy
Umbrella liability insurance provides an additional layer of security to those who are at risk for being sued for damages to other people’s property or injuries to someone else. This insurance becomes effective after all other insurance coverage that an individual may have has been exhausted. The umbrella policy acts as an umbrella and only activates when other insurance coverages are maxed out. It then provides coverage for those otherwise uncovered damages. This type of coverage is particularly useful for those who may be the targets of lawsuits because they have substantial assets or others may have the illusion that they have substantial assets. Doctors, lawyers and business owners or those who drive newer model or expensive cars can find themselves to be lawsuit magnets, and additional liability insurance coverage helps to ensure they are not stuck with judgments that may erode their hard-earned personal assets if they have the misfortune to be at fault in, for example, a motor vehicle accident.
Do You Need Umbrella Insurance?
Since the whole point of having additional liablity coverage is to protect your personal assets from a lawsuit or judgment, it usually only makes sense to purchase this insurance coverage if you have sufficient assets that need to be protected. Therefore, in some instances, an umbrella policy may not make sense for most people if they do not have substantial assets that may end up being subject to an excess judgment in the event something occurs to cause damages to others and that person is held liable for someone else’s losses. The insurance experts at The Gordon Agency in Boca Raton, Florida, regularly work with our clients to determine if their existing insurance coverage limits are appropriate for the potential of excess damages against them or if umbrella liability insurance is even right for them in the first place. We will conduct a thorough review with you of what assets you have that may need to be protected and whether additional liability insurance is the best way to protect those assets. Sometimes, your assets may be held in ways that someone cannot reach them, so we will be able to advise you as to whether you are truly a candidate for umbrella liability coverage. In the event a client does need umbrella liability insurance, we are able to shop multiple different insurers in order to obtain coverage for our client at the best rate possible.