Umbrella Insurance in Massachusetts

Experts break down Massachusetts umbrella insurance costs, coverages, companies, and more.

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Every year, more than 286,000 civil lawsuits are filed in the US. Just like in any other state, residents in Massachusetts can be the target of a lawsuit at any point in time. You can protect your assets and financial stability with an umbrella insurance policy. 

Umbrella insurance can benefit some more than others, so speaking with a Massachusetts independent insurance agent is an excellent place to start. Agents can answer any questions you have about coverage and guide you in determining if an umbrella policy is right for you.

What Is Umbrella Insurance?

Your homeowners insurance and auto insurance policies will contain liability coverage that helps cover the costs of any property damage or bodily injury that you may cause. However, there are limits to the amount of liability coverage you can purchase in these policies. If you need extra liability coverage, that's where umbrella insurance can benefit you.

Umbrella insurance acts as an additional liability insurance layer that protects your home, auto policies, and others above and beyond your liability limits.

What Does Umbrella Insurance Cover in Massachusetts?

Umbrella insurance will cover the same scenarios as your standard home and auto liability coverage, but at a higher limit. Should you find yourself in the middle of a liability claim or lawsuit, your umbrella policy would cover:

  • Any injuries that occur in your home or are caused by your vehicle, including medical bills
  • Legal fees
  • Court fees, including restitution costs and judgment fees
  • Costs associated with libel or slander claims
  • Funeral costs

Examples of liability claims where umbrella insurance can protect you:

  1. You're driving on the freeway and rear-end the car in front of you. Multiple passengers in the vehicle are sent to the hospital for injuries, and their vehicle is totaled. 
  2. Your son and his friends are having a pool party at your house, and one of the kids slips and falls by the pool and suffers severe injuries. His family decides to sue you.
  3. You're backing your vehicle out of your driveway and accidentally hit the neighbor who is walking by. They end up being out of work for several months and sue you for their lost wages while not being able to work.

As you can see, accidents can come in all shapes and sizes, and umbrella coverage can typically help. It's important to know that umbrella insurance does not cover intentional damage or injuries or personal injuries and property damage.

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Who Needs Umbrella Insurance in Massachusetts?

You're never required to purchase umbrella insurance, but many people can benefit from it. No matter what you're being sued for, once a civil lawsuit is opened against you, all of your assets are in danger. 

When trying to determine if you really need umbrella insurance, look at your assets. Consider the following and their worth:

  • Real estate you own
  • Vehicles you own
  • Investments
  • Retirement
  • Future income
  • High-value personal belongings such as jewelry, vehicles, artwork, etc.

If losing any of these things is a concern, then an umbrella policy is worth considering. 

How Much Umbrella Insurance Do I Need in Massachusetts?

There are several factors that go into determining how much umbrella insurance you need. It's best to consider your entire net worth and purchase enough umbrella insurance to cover a potential total loss. 

Umbrella insurance limits usually start at $1 million. While this will be adequate for many, some individuals like lawyers, personal coaches, or very wealthy people could need to multiply that by five or ten.  

Talk with your agent before you buy to make sure you're getting the coverage you need. When speaking with your agent make sure to discuss your current financial status, your potential financial status, and any exceptional risk factors.

Can You Deduct Umbrella Insurance on Your Taxes in Massachusetts?

It's a common question whether you can deduct the annual money you pay towards your insurance premiums on your taxes. Unfortunately, you cannot deduct your umbrella insurance premium from your Massachusetts taxes because it is personal insurance coverage. 

There is one instance when you can write off an umbrella policy and that is if you're a business owner who has purchased a business umbrella policy. Business insurance premiums can be deducted from your taxes.

What Are the Best Umbrella Insurance Companies in Massachusetts?

Finding a great insurance company starts with knowing who offers reliable coverage at an affordable price. You also want a company that's known for customer service and having an easy process if you have to file a claim. Fortunately, independent insurance agents in Massachusetts know which companies fit these requirements.

Agents have previous experience working with the best umbrella insurance companies in Massachusetts. They'll shop quotes for you and guide you in selecting a top-rated carrier for your policy.

Why Shop Umbrella Insurance with a Massachusetts Independent Insurance Agent?

Dealing with a civil lawsuit or liability claim can be time-consuming and financially devastating. You never know when an accident will happen, so securing umbrella insurance long before you need it is key. The easiest way to secure a policy today is to work with an independent insurance agent in Massachusetts. 

Agents are easy to work with because they speak with you free of charge. They learn about your needs and then shop multiple umbrella insurance quotes for you. Agents are experts in insurance and can guide you in selecting an umbrella policy that has the limits you need to be fully protected.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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https://www.iii.org/article/what-umbrella-liability

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