While northern and southern California may seem like different worlds, one thing most residents of this state have in common is the many choices they have when it comes to selecting liability insurance. Sometimes, however, the maximum liability protection these policies offer is not high enough to meet the costs associated with a liability lawsuit. When this happens, it pays to have an umbrella insurance policy. If you have been considering supplementing your current liability coverage with umbrella insurance, an independent insurance agent can help you find safe and affordable policy options.
Some Good Reasons To Consider Umbrella Insurance
- You have a lot of valuable assets that you wish to safeguard.
- You own rental properties or a freelance business that has liability risks.
- There is a young or inexperienced driver in your household.
- You own a boat, RV or all-terrain vehicle.
- You have a swimming pool on your property.
Regardless of your reasons for considering a policy, if the liability coverage limits of your currently held policies do not seem high enough, umbrella insurance in California may be just what you need.
What Is Umbrella Insurance?
Umbrella insurance provides a way to get extra liability coverage for all the insurance policies that currently provide you with liability coverage. This means that if someone sues you for liability and the liability amount exceeds your insurance coverage, your umbrella insurance policy will cover the remaining costs, up to your much higher policy limit.
This type of extra liability insurance is the best way for those who own a lot in assets to protect their finances from the costs of a catastrophic accident or excessive legal defense fees.
Who in California Can Benefit Most from Umbrella Insurance?
A state where the average home listing price exceeds $650,000, CA has its share of well-to-do residents. It is an unfortunate fact, but wealthy people are the most likely to be targeted in liability lawsuits. Furthermore, juries tend to issue excessively high awards when they believe the defendants have the means to cover the exorbitant costs. An umbrella insurance policy can safeguard your hard-earned wealth by providing you with the extra liability coverage you may need in these cases.
You do not have to be wealthy to benefit from having an umbrella insurance policy. If you own assets such as a home, car or stock portfolio, you risk losing them if you find yourself held responsible for costs that far exceed your insurance policies’ liability coverage limits. Umbrella insurance can help prevent this from happening.
Why Would You Need Umbrella Insurance?
California residents must carry liability insurance for their vehicles. Many choose to purchase coverage that exceeds the state requirement of $15,000 bodily injury per person, $30,000 bodily injury per accident and $5,000 property damage – amounts that are low by the standards of most states. Car insurance providers typically permit you to purchase a maximum of $300,000 in bodily injury liability coverage, although some offer up to $500,000. Likewise, home, condo and renters liability insurance maximums are between $100,000 and $500,000.
Unfortunately, these maximum coverage amounts sometimes are just not high enough. For example, when you take into consideration that the average liability cost for a car accident involving a serious injury is $96,000 and the average cost for a fatal collision is currently $1.6 million, you can see that in the case of a major accident, the coverage offered by your vehicular insurance policy simply may not be enough. An umbrella insurance policy can provide you with millions of dollars’ worth of extra insurance to supplement all of your policies. It is the best way to ensure complete financial protection against accidents for which you may be at fault.
Does Umbrella Insurance Cost a Lot?
Many people find umbrella insurance policies to be surprisingly affordable considering the extremely high amounts of liability coverage these policies can provide. The average cost to purchase an additional $1 million in liability coverage is currently only about $150 - $300 per year. If you have substantial wealth or valuable assets that you wish to protect, investing in umbrella insurance may be a very wise decision.
As with any type of insurance, the cost of your specific umbrella insurance policy will depend largely on the amount of coverage you purchase and your level of risk, as calculated by the insurance company. Rates will vary from person to person as well as from one insurance provider to another, so it is a good idea to engage in comparison-shopping. When you get quotes from at least three different insurance companies, you can be certain that you will be getting the best rate.
What Is the Best Way To Compare Umbrella Insurance Quotes?
If you may benefit from having an umbrella insurance policy, you may want to consult one of the many insurance agents in the TrustedChoice.com network. These agents can answer any questions you might have and help you assess your coverage needs. Talk with a local independent agent to get more information and to start reviewing umbrella insurance quotes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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