When your underlying auto or homeowners insurance just isn’t enough, umbrella insurance might be the difference between walking away from an unfortunate event with everything you’ve worked hard for or being left with nothing.
Umbrella insurance serves as a barrier between you and the unforeseen, protecting your life savings. At Pentagon Insurance, we offer our customers umbrella insurance that provides an extra layer of liability protection from nearly anything that comes your way. So whether you are facing a small rain cloud or a monsoon, you can relax knowing you are covered.
Who Needs Umbrella Insurance?
Nearly everyone can benefit from umbrella insurance, though few people understand why. Some believe the limits on other types of personal coverage are more than enough to protect them from lawsuits and judgments. The truth is, liability claims can quickly exceed the limits on standard insurance policies, such as homeowners, auto, and recreational vehicle policies. Not to mention, the most common types of insurance often do not cover certain types of liability claims, such as defamation lawsuits or damages occurring abroad.
When liability limits are exhausted on a policy, any remaining unpaid medical bills or judgments still must be satisfied. You could be forced to liquidate your savings account, sell a home, or even dip into your retirement to pay the bill. Further still, you may not be safe once your assets are seized. In some cases, a judge may order a garnishment of your future wages. Imagine spending your life working to pay for a liability that you could have been insured for.
At Pentagon Insurance Agency, we recommend umbrella insurance as backup liability protection to anyone who has accumulated a significant amount of assets (such as in a college or retirement account) or to those who have jobs and a steady income. On average, the cost of a couple of movie tickets is enough to provide $1 million of additional liability protection that can extend to nearly any type of liability incident.
Here’s an example: You are driving to a conference out of state and accidentally collide with another driver at high speeds on the freeway. The other driver requires multiple surgeries and is out of work for a year to recover. Your high-limit property liability coverage takes care of the expensive car you hit, but your bodily injury limits are not enough to cover all of the medical bills. Then, you get hit with a lawsuit from the driver, claiming you owe him for 12 months of lost wages. Since the victim is the CEO of a large company, the liability damages quickly start to add up.
If you face a million dollar claim after causing a car accident, you cannot rely on your car insurance to take care of the entire bill. Often, auto insurance limits top out far below what you might actually need in an accident. Even with high limits on your auto coverage, how could you possibly pay for the rest of your liability out of your own pocket? With umbrella insurance, you wouldn’t.
Umbrella Insurance in Minnesota
In general, umbrella insurance policies are in addition to your existing coverage which starts at $1 million in coverage and can be purchased for up to $5 million. Your umbrella insurance could help you pay for:
- Legal defense fees
- Medical bills
- Lost wages
- Pain and suffering
- Personal injury claims
- Slander and libel claims
- Claims occurring out of the country
- And more!
For more information about umbrella insurance or to request your free quote, contact our office today.