In Louisiana, lawsuits are a fact of life. No matter how meticulous or cautious you may be, accidents can happen, and in today's society, accidents lead to lawsuits. Your homeowners coverage offers liability protection for incidents that occur on your property, up to the limits of your policy. Your car insurance and business insurance also include limited liability coverage. However, since lawsuits can easily reach the hundreds of thousands of dollars in legal fees and settlement costs, these limits can be surpassed easily, leaving you to foot the bill.
Louisiana umbrella insurance can give you the peace of mind that comes with knowing you are protected from the cost of litigation.
- The median net worth of an individual in the South is about $60,700.
- The average payout for an injury claim is $60,000, some lower and some much higher.
- Civil lawsuits cost the US economy $233 billion each year.
- 84% of tort lawsuit plaintiffs receive monetary damages.
- Over 90% of lawsuits are settled without trial.
What Does Louisiana Umbrella Insurance Cover?
As the name implies, Louisiana umbrella insurance, also called extended liability insurance, protects your assets above and beyond all other liability coverage you have. This insurance only kicks in when all of your other liability insurance limits are exhausted or cannot be used.
For example, if you were to get sued for slander, your auto or homeowners insurance would probably lack liability coverage for that issue. Without an umbrella policy, you would be responsible for the cost of your legal defense, at $80-$200 per hour. Also, if a judgment were made against you, and you didn’t have umbrella insurance, you would have to pay the damages out of your assets, savings, and future earnings.
How Much Coverage Do I Need?
Even if you are not particularly well-off, a plaintiff can choose to go after your future income, home, and savings accounts in court. If you have substantial income or property, you are statistically even more likely to be sued than your paycheck-to-paycheck neighbor. Umbrella coverage often starts at a limit of $1 million, but the more coverage you purchase, the better the deal. It only takes a small jump in premium to increase your limits substantially, so consider what you can afford, and what you need.
Whether you live in Metairie, Lake Charles, Shreveport, or Baton Rouge, Louisiana umbrella insurance can be a valuable protective tool for your property and future income. If you are unsure about how much coverage to purchase, a local agent can help you assess your net worth, using a formula that calculates your assets and liabilities.
How Much Does Umbrella Insurance Cost?
Since umbrella insurance doesn’t usually kick in until all other liability limits are exhausted, the chances of a claim against the policy are low. Therefore, insurance companies are taking very little risk, which means they can offer $1 million umbrella policies in many instances for less than what you’d pay for $250,000 in liability coverage on your house or car. A number of factors go into the rate, such as your net worth, your occupation, your hobbies, and your location. To get a rough estimate, figure about 5-8% of your total car and homeowners insurance costs. It's usually not much to pay for a huge bump in liability coverage.
Get the Louisiana Umbrella Insurance You Need
You can find umbrella insurance the easy way, by speaking with a local, Trusted Choice® agent. These are independent agents, who can access a wide variety of companies and coverage options, to find just the right policy for your needs. Contact an agent near you, for Louisiana umbrella insurance quotes tailored to your budget and lifestyle.