Arizona residents need only to see the billboards along state highways or late night commercials promising millions of dollars in legal settlements to wonder why they didn’t get legal help when filing a lawsuit. And what happens when they find themselves on the wrong side of a court case? Only a comprehensive umbrella insurance policy can protect your assets and future earning potential from being the subject of garnishment or a settlement should you cause another person's injury or death. Before you search for umbrella insurance quotes, however, there are several factors to consider.
In today's litigious society, it is not uncommon to see multi-million dollar awards in lawsuit settlements and judgments. Here is the short list for Arizona:
Umbrella insurance is a type of extra liability insurance that will supplement your basic Arizona liability policies, such as your auto, home or business insurance. An umbrella liability policy covers a much higher liability limit that goes beyond claims directly relating to your home and auto.
The primary function of an umbrella policy is to protect your assets from an unforeseen event such as an accident in which you are responsible for damages, bodily injury or death. If you must pay damages due to a settlement, judgment or jury award, your umbrella coverage will pay the damages, up to the policy limit.
An umbrella policy provides additional coverage or excess liability above the limits of your basic insurance policies. It can protect you from bodily injury liability claims and property damage liability claims. Umbrella policies also provide a broader form of coverage and can help cover legal fees, false arrest, libel and slander.
The following types of situations are common in Arizona, but an umbrella insurance policy can protect your assets and future earning potential from being subject to financial ruin due to these risks:
It may be easy to assume only the wealthy need an umbrella insurance policy, but those with less to lose often have more to gain from the added protections. About 85 percent of umbrella insurance claims stem from traffic accidents, and no one is immune to those. The following people, however, may want to seriously consider an umbrella insurance policy:
As you review the options for umbrella insurance from Arizona providers, you should consider the following factors in determining which limits to set:
You may be surprised to learn how affordable umbrella insurance policies can be when you start reviewing quotes. Most Arizona insurance companies offer these plans in increments of $1 million, up to $5 million, and some go up to $10 million in increments.
Insurance companies require specific levels of liability coverage on your auto and home insurance policies before they will give you quotes for an umbrella policy. These are typical levels in Arizona:
You may need to review your current liability insurance policies to find out if they meet these requirements. The average quote for a $1 million policy is $200 annually, which you might find to be a relatively low price for the peace of mind and security it offers.
It's also important to remember that double the coverage doesn't always mean double the premium. You can easily find a $2 million umbrella insurance policy in Arizona for less than $300 a year.
Plaintiffs file lawsuits every day in Arizona. While it's important for victims and their families to receive compensation for injury or death, it is equally important for you to protect your financial ability to provide for yourself and your family. Knowledgeable, independent insurance agents from the Trusted Choice® network are always available to answer your questions about umbrella insurance, suggest coverage limits and even assist you in filing a claim.
Contact a Trusted Choice agent near you to find out how you can get umbrella insurance protection that meets your needs and budget.