When it’s a sunny day in the Prairie State, you don’t think about having an umbrella with you. Weather can change quickly, and if you take an umbrella along, you’re ready just in case. That is the concept behind umbrella coverage. Illinois umbrella insurance is a type of coverage that can help prepare you for those “worst-case scenarios” that none of us like to think about. Things like causing a serious accident that leaves people injured or property severely damaged are the kinds of things that this special liability protection covers.
If your home, car and other vehicles are properly insured, but you still wonder if your coverage is enough, you may want to consider umbrella insurance to cover unexpected situations that could negatively impact your financial well-being. If you injure someone through a negligent act or a poor driving decision, this extra insurance policy can protect your finances and cover the costs of liability claims, lawsuits and your legal defense. Find a local independent insurance agent in our network today to compare Illinois umbrella insurance quotes and get peace of mind.
Assets Illinois Residents May Want to Protect
- The average annual income in Illinois is about $51,000.
- The individual median net worth in the state is about $75,000.
- The median estimated value of a home in Illinois is about $143,000.
What Is Umbrella Insurance?
Umbrella insurance – also called excess liability insurance – is a type of coverage that protects you in the event that you cause harm to another person or that person’s property. Depending on the amount of damage or injury, your existing liability policies associated with your home, auto, motorcycle or RV, for example, may not be enough to cover a liability claim. An Illinois umbrella insurance policy protects your assets above and beyond the liability limits of your standard insurance policies. If you don’t have umbrella insurance and your financial responsibility is greater than your liability limits, you would pay the difference out of your pocket.
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How Does Excess Liability Insurance Work?
Here is a scenario. Let’s say you have $1 million in liability coverage on your vehicle, and you are involved in a serious crash that results in major injuries. You are sued for medical expenses and lost wages, and the amount comes to $2 million. If you didn’t have an excess liability policy, your vehicle insurance could pay the first $1 million, but you would be on the hook for the other $1 million. An umbrella policy of $1 million or more would cover that difference without affecting your assets.
Keep in mind that if you are involved in a legal suit over libel or slander – for example, if one day you accidentally say something that causes someone emotional harm and that person sues you – your liability insurance can come into play. In short, an umbrella policy kicks in when your other liability coverage is exhausted – and only then.
Is Illinois Umbrella Insurance Expensive?
Umbrella insurance isn’t used until all other liability coverage is exhausted, so the risk of filing a claim against the policy is very low for the amount of protection it provides. Because of that low risk, you’ll generally find that even a $1 million umbrella policy is cheaper than most $250,000 or $500,000 liability policies on your home or auto.
Who Should Consider Umbrella Insurance?
Anyone can buy an umbrella insurance policy, but it is most important for those who have considerable assets to protect. High-profile people with deep pockets are in a higher risk category for large lawsuits, whether due to wrongdoing or negligence. However, anyone can be involved in a bad accident that results in large legal costs. In this litigious society, if you have any assets, such as a home and vehicles (including ATVs or snowmobiles), or you are someone who owns a business and you want to protect yourself from potentially devastating losses, you may want to consider an umbrella policy.
How to Compare Illinois Umbrella Insurance Quotes
To compare your Illinois umbrella insurance coverage options, contact a local agent in your part of Illinois. These independent agents can assess your situation and needs, and can help you compare a range of quotes for the coverage you need.
Find an independent agent in your area today.