Umbrella insurance is so named because the coverage is like an umbrella over your existing liability insurance, such as your home and auto policies. Your umbrella policy provides extra liability coverage for unforeseen circumstances that result in injury, property damage or death, particularly if a liability claim results in a lawsuit. North Carolina umbrella insurance can be the difference between an unfortunate accident and permanent financial difficulty for you and your family.
Regardless of our best intentions, we all are at risk of errors or negligence that result in harm to another person. Umbrella liability coverage can protect you financially from that risk. An independent insurance agent in our network can provide several North Carolina umbrella insurance quotes from various insurance companies for you to compare. Contact your local member agent today to find out whether umbrella coverage makes the most sense for your specific situation.
Coverage Provided by North Carolina Umbrella Insurance
Under most circumstances, umbrella insurance provides protection above home and car insurance:
- Homeowners: Standard policy minimums are $100,000 per occurrence.
- Automobile: Standard policy minimums are $30,000 for one person and $60,000 for two or more, as well as $25,000 property damage coverage.
In today's world of high medical costs and litigation for just about anything, those minimums may barely cover legal fees. While umbrella or extra liability insurance usually comes into play as an addition to the coverage you already have, there are also circumstances when people file claims for which you have no other protection. Here is a summary of those:
- Libel: This usually refers to written defamation. It could also apply to character assault with images.
- Slander: Refers to spoken defamation.
- False arrest: In the event that you are improperly arrested by law enforcement, your defense may be expensive. This can include arrest by public officials or detention by private security firms.
- Invasion of privacy: An umbrella policy can protect your right to privacy in your home, a hotel room, a public restroom, and other places where most people can reasonably expect to be alone.
Your agent can help you determine which other perils are covered and which require a more complete North Carolina umbrella insurance policy.
Extreme Legal Judgments Are on the Rise
The following are some examples of cases in recent years where North Carolina umbrella insurance could have been beneficial:
- A woman who had to undergo a leg amputation was awarded $1.8 million after a bus crash in Buncombe County.
- A Charlotte woman struck by a garbage truck received a $1 million award.
- In Cumberland County, an award was granted of $1.05 million for a brain injury as the result of a car accident.
In each of these cases, someone's error or act of negligence resulted in a large lawsuit. In these events, the cost of legal defense and the cost of the judgment awarded to the injured can be covered by an umbrella policy, if there is such a policy in place. Otherwise, these costs must be paid out of pocket. If the funds are not available, the costs can come from savings, investments and even future earnings. Many people are under the impression that if they have few assets, they do not need to be concerned with an extreme financial loss. The fact is that a legal judgment can lead to a choice between bankruptcy and lifetime payments to compensate someone you injured, regardless of your best intentions.
Compare North Carolina Umbrella Insurance Quotes
If you are like most people, you may assume that if you have homeowners and automobile liability insurance, you are well protected. However, it may be time for a full assessment of your coverage, risks, and concerns. You may find that your minimum coverage does not nearly approach your actual risk. Additional liability insurance can be surprisingly affordable. The annual premium for up to $1 million of protection is typically under $200.
To get accurate North Carolina umbrella insurance quotes, start by getting in touch with a nearby agent in our network. A local member agent can help you compare several different options and quotes, answer all of your questions, and help you find the right coverage for your needs and budget.
Find a member agent today and get peace of mind.