Personal Umbrella Insurance in Dover: Better Protection From Lawsuits

by Tom Vocatura on Sep 8, 2016 12:02:22 PM

As a homeowner in Dover, one of your main priorities should be to protect your assets for you and your family. Most people purchase home insurance and auto insurance policies to help protect themselves from financial ruin. However, in some cases, these personal insurance policies simply aren't sufficient to protect homeowners and their assets. This is especially true when it comes to homeowners who have many high value assets to protect from liability claims. If you're seeking extra protection in the form of another insurance policy, here is how personal umbrella insurance can help protect you from lawsuits. 

Personal Umbrella Insurance Dover

How Can Personal Umbrella Insurance Help Protect Dover Residents from Lawsuits?

Personal umbrella insurance is a type of liability insurance that is intended to supplement basic liability policies, such as home insurance and auto insurance. An umbrella insurance policy will allow you to enjoy higher limits in comparison to that of your basic insurance policies. In the event a claim is filed and your basic liability policies are exhausted, your umbrella insurance policy cankick in. Since umbrella liability policies offer higher limits, you are better protected if you face a lawsuit.

For example, if you had been involved in a fatal traffic accident in which you were deemed responsible for bodily injuries and damages, the other party may file a lawsuit. If the lawsuit amounts to about $1 million, your auto insurance may help cover the costs up to perhaps $250,000, which leaves three quarters of a million left. Your umbrella policy with a limit of $1 million can help cover the rest.

How Much Personal Umbrella Insurance Do Dover Residents Need? 

If you're interested in purchasing an umbrella insurance policy in Dover to help protect yourself from lawsuits, you may be wondering how much coverage you need.

Of course, more coverage translates to a higher premium. As a result, many homeowners opt to purchase an umbrella policy with a $1 million limit. Keep in mind that most umbrella policies can be purchased in million dollar increments, making $1 million the lowest limit possible for many umbrella insurance policies. While a $1 million limit is sufficient for many people, about 13 percent of all personal injury settlements and liability awards amount to $1 million or more. Therefore, it may be worthwhile to purchase $2 or $3 million of protection. This is especially true considering that your premium likely won't double or triple in cost even though you doubled or tripled the amount of coverage.

Consider the Value of Your Assets

A huge factor all homeowners should consider is the value of their assets. If you have more assets to protect, chances are that you would benefit immensely from more coverage. When considering the value of your assets, you should consider properties, retirement funds, bonds, possessions, stocks, and savings. Ideally, you should get an umbrella policy limit that completely covers the value of your assets. For example, if your assets have a value of $2.5 million, then you should get an umbrella policy that offers $3 million in protection. It is estimated that about 20 percent of people with considerable wealth don't have a umbrella insurance policy at all. Don't be a part of that 20 percent, whatever you do.

No matter how careful you are, there is always the chance that you will face a lawsuit at some point. While a home or auto insurance policy will help protect you from lawsuits, you will find that personal umbrella insurance can offer far more comprehensive protection. Talk to a friendly insurance agent serving Dover today to learn more about your situation!

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This material is for informational purposes only. All statements herein are subject to the provision, exclusions, and conditions of the applicable policy. For an actual description of all coverages, terms, and conditions, refer to the insurance policy. 

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