Umbrella Insurance in New York
Experts break down umbrella insurance costs, coverages & companies in New York.
Everyone makes mistakes once in a while. Sometimes a mistake, error in judgment, or negligent act can result in someone else suffering significant loss or injuries. In the worst cases, umbrella insurance can protect your assets by providing a significant amount of liability coverage.
Independent agents in New York can explain the many benefits of having umbrella insurance and can help you find the best and most affordable policy. Contact an independent insurance agent near you to learn more.
What Is Personal Umbrella Insurance?
Personal umbrella insurance is a secondary insurance policy. It can significantly boost the personal liability coverage provided by the insurance policies you currently carry, which are your primary policies.
If you are responsible for someone else experiencing injuries, property damage, or financial losses, and your financial obligations exceed what your primary insurance policy can cover, your umbrella insurance can kick in to cover the overages up to its own coverage limits.
Most umbrella insurance policies start at $1 million worth of extra liability insurance. In most cases, increases in this coverage are made in $1 million increments.
Is Umbrella Insurance Required in New York?
No. Personal umbrella insurance coverage is fully optional.
This coverage may be worth considering, however, because it can help you retain your property, savings, and other assets by providing a very high amount of liability coverage at a very reasonable price.
How Much Does Umbrella Insurance Cost in New York?
The Insurance Information Institute (III) reports that most people can purchase $1 million worth of umbrella insurance coverage for just $150 to $300 a year. Each additional $1 million in extra liability coverage can typically be purchased for between $50 and $75.
Umbrella insurance coverage is so affordable because it doesn’t kick in unless your primary liability coverage has been exhausted.
What Does Personal Umbrella Insurance Cover?
Personal umbrella insurance is designed to cover your additional costs if the limits of the liability coverage in your primary insurance policies are too low to meet your financial obligations.
You can use your policy to boost the liability limits of your:
- Vehicle coverage
- Home coverage
- Other policies that provide personal liability protection
In most cases, you will be required to purchase the maximum liability coverage offered by your primary insurance policies for your umbrella insurance to provide coverage.
Save on Umbrella Insurance
Our independent agents shop around to find you the best coverage.
How Can Umbrella Insurance Help Vehicle Owners in New York?
To qualify for umbrella coverage for your car, most insurance providers will require you to carry at least $250,000 per person and $500,000 per accident worth of bodily injury liability coverage in your primary auto insurance policy. This is typically the maximum coverage offered by car insurers.
In New York, drivers are required to carry a minimum of $50,000 in personal injury protection insurance (PIP). This means that if you cause a collision in which someone is injured, their insurance will cover at least the first $50,000 in medical bills and your insurance will need to cover any overages.
Umbrella insurance can protect you in worst-case scenarios, such as if you cause a collision that results in multiple serious injuries or, worse, a fatality. According to the CDC, the average cost of a collision-related death in New York is around $1.4 million.
If you carry the maximum liability car insurance and cause a fatal collision, umbrella insurance can save you a million dollars in extra liability costs.
How Can Umbrella Insurance Help Homeowners and Renters in New York?
To qualify for personal liability umbrella coverage, most insurance providers will require you to carry at least $300,000 worth of liability coverage in your homeowners, renters, or condo insurance policy.
These policies usually offer up to $500,000 in personal liability coverage, which, in most cases, is far more than sufficient.
However, if your actions or negligence result in you unintentionally causing someone else to experience significant injuries, property damage, or financial losses, a judgment against you in a liability lawsuit can potentially exceed this amount, especially in wrongful death cases.
Most people will never find themselves facing an expensive liability lawsuit, but if it happens to you, having umbrella insurance can ensure that you will have enough coverage to pay for your financial obligations.
How Else Can Personal Umbrella Insurance Protect New York Residents?
If you carry any other policies such as landlord insurance, boat insurance, or ATV insurance, these policies will also provide liability coverage designed to pay for property damage, injuries, and other harm that you might unintentionally cause through carelessness, negligence, or accidents.
Personal umbrella insurance can boost the liability coverage in each of these policies, ensuring that you have sufficient liability coverage if the unthinkable happens.
What Is Not Covered by New York Umbrella Insurance?
As with any insurance policy, umbrella insurance has some exclusions. In most cases, umbrella insurance claims will be denied if the injuries or property damage:
- Were inflicted intentionally or with malice
- Occurred while you were committing a crime
- Were sustained by you or members of your household
Umbrella insurance also will not cover expenses related to professional liability lawsuits. You will instead need to carry a high amount of professional liability or malpractice insurance.
What Are the Best Umbrella Insurance Companies in New York?
The best umbrella insurance companies in New York are the ones that have a well-documented history of reliable coverage, responsive customer service, and reasonable prices.
Local independent agents have established relationships with many of the top insurance companies in the area, so they can provide you with quotes from a variety of trustworthy insurers.
How Can an Independent Agent in New York Help Me Find the Best Umbrella Insurance?
Independent insurance agents are available to explain the fine details of umbrella insurance and can gather customized quotes from a variety of New York’s highly rated insurance companies.
This lets you be sure that you are getting the coverage you want at a competitive price. Arrange an obligation-free consultation with an independent insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2023, Consumer Agent Portal, LLC. All rights reserved.