Many Ohio residents carry some type of liability insurance as part of their homeowner or car insurance policies. Liability insurance pays claims and protects you from lawsuits if you are at fault for someone else's injury or property damage. Even if you didn't intend to cause harm, you can still be held legally responsible and required to pay a claim. If your homeowner or car insurance liability limits are not high enough to cover the full claim, you can be forced to pay that claim with your own income and assets.
Ohio umbrella insurance can cover the cost of catastrophic liability claims. An independent insurance agent can help you compare hundreds of insurance companies, extra liability insurance options, and rates to find the umbrella policy that is right for you. Contact a local agent now for Ohio umbrella insurance quotes.
Increase in Liability Claims During Previous Years
- Average liability claims increased by 240%.
- Average liability claims in vehicle accidents increased by 420%.
- Average liability claims in personal negligence cases increased by 1118%.
As the US becomes more and more litigious, it becomes increasingly important to prepare for an unexpected lawsuit. Whether you bring in a large income, or barely make ends meet, a claim against you could cost you your business, home, savings, and future earnings.
What Is Ohio Umbrella Insurance?
Ohio umbrella insurance raises your liability coverage limits. It is also known as extra liability insurance or extra insurance. Even if you already have liability coverage with a home, auto, boat or business policy, the umbrella policy pays liability claims that exceed the coverage limits on those policies. For example, if you have auto liability insurance for $50,000, and you cause an accident with $100,000 in damages, the umbrella insurance pays the additional $50,000 of the claim.
Without the umbrella coverage, you would have to pay the excess liability out of your own pocket. Many financial experts advise you to carry as much umbrella liability as you can reasonably afford, to protect your way of life from the risk of a devastating lawsuit. Umbrella liability will pay any covered liability claims up to your coverage limits, as well as provide you legal defense and court costs. Legal fees can be the most costly expense in a lawsuit.
How Much OH Umbrella Insurance Is Enough?
These are two of the most important issues to consider when you purchase an OH umbrella policy.
- The value of your current assets: An asset is anything you own that has value. Assets include properties, stocks, bonds, retirement funds, businesses, and even the equity in your home. All of these items are at risk if a liability claim is made against you. Also, the more assets you have the more you need a liability policy, so your assets are not drained by a third party liability claim.
- The potential loss of future income: A liability lawsuit can also target your future earnings in addition to your current assets. If you receive a liability judgment and do not have umbrella coverage, your future income can be taken to pay the liability claim.
Coverage limits on an umbrella insurance policy typically start at $1 million and go up to $10 million for specifically qualified individuals. Ohio currently requires motorists to carry $12,500 of auto liability for injury to one person in an accident, $25,000 for all persons injured in an accident, and $7,500 for property damage in an accident. Homeowner and rental property liability limits typically range from $100,000 to $500,000. A liability claim can easily surpass these dollar amounts in the event of a significant injury, permanent disability, or extensive damage to another vehicle.
How Much Does Umbrella Insurance Cost?
When you compare the cost of a possible catastrophic liability claim to the price of a typical umbrella insurance policy, the price is surprisingly reasonable. Normally a $1 million policy costs around $150 to $200 per year. If you increase your coverage above $1 million, the cost of the premium per million dollars usually drops. So if you purchase $3 million in coverage, you will pay less than three times the cost of a $1 million policy.
What Does an Umbrella Liability Policy Cover?
Although it is not exhaustive, the following list gives you an idea of the range of liability incidents that umbrella insurance can cover:
- Professional liabilities
- Property damage
- Dog bites
- Car rentals
- Landlord liabilities
- Bodily injury or death
- Invasion of privacy
- False arrest
Umbrella policies are available for individuals and businesses. If you are self-employed you may face a higher risk of litigation, because there is no over-arching corporate liability policy to protect you. You can benefit a great deal from an umbrella insurance policy, in addition to basic business insurance, or an in-home business rider to your homeowners policy.
Find Ohio Umbrella Insurance Quotes Now
Now is the safest time to set up your umbrella insurance, especially if you own assets that exceed your current liability coverage, earn significant income, or own a business. An independent insurance agent can help you compare hundreds of insurance companies, coverage options, and rates, to find the right OH umbrella coverage for your specific needs and budget.
Contact a local agent now for Ohio umbrella insurance quotes.