Umbrella insurance may seem confusing; however, the word "umbrella" is the key to understanding this type of insurance. Just as an umbrella covers the empty space around you, an Oklahoma-based umbrella insurance policy covers you where other insurance policies cease. Read below to find out what you need to know before you start reviewing quotes.
Use our independent agent matching system to find the best insurance plan in your area. You tell us what you’re looking for, and our technology will recommend the best agents for you. Any information you provide will be sent to only the agents you pick. We do not sell to third parties.
Umbrella Coverage Facts
- 13% of personal injury liability awards and settlements are $1 million or more.
- Even a simple slip-and-fall injury can cause major head trauma, and thousands of dollars in medical care.
- In the event of a major catastrophe, you could be liable for life-long care of the injured.
- When your regular insurance reaches its limits, you are personally responsible for covering overages.
Why Do You Need Umbrella Insurance?
While many insurance policies have what seem to be high limits, those limits may be very low in the case of a large lawsuit award. If you are in an accident or someone is hurt on your property, you could stand to lose millions of dollars in a lawsuit judgment against you.
While your insurance coverage may be as high as $250,000 or $300,000, these coverage amounts are very low when the injured party needs ongoing care. In the case of spinal damage, limb loss, or brain injury, the injured party would need lifelong care, which would probably cost in the millions of dollars, meaning you could be liable for the funds that your insurance doesn't pay. This could come from selling a home or car, or out of deductions from future earnings.
By having an umbrella policy in place, you can protect your lifestyle in OK from large judgments like the one mentioned above.
How Much Umbrella Insurance Is Enough?
The amount of extra insurance you need may be different from the amount your neighbor needs. While there is no steadfast rule as to the right amount of extra liability insurance coverage, when getting umbrella insurance quotes on Oklahoma, it's important to have the right information available to get an accurate quote.
Take stock of your risks. If you have an active lifestyle that includes dangerous activities like speedboating, hunting or competitive racing, you will need more umbrella coverage than others will.
Consider your assets. Every asset you have can become the target of a large lawsuit. Take all of your assets into account when determining your worth, and double their value – your home, stocks, cars, retirement accounts, etc. This will give you the amount for which you should find umbrella insurance.
Unfortunately, some lawsuits can result in the garnishing of future income. Take this into account when figuring out how much coverage to purchase. While you may have a low-level entry job now, your future earning potential could be substantial.
What Does Umbrella Insurance Cover?
Umbrella insurance doesn't just cover judgments that exceed your regular policy limits. An umbrella policy can cover injuries like dog bites, false arrest, libel, slander, other lawsuits and defamation of character. A professional umbrella policy can also cover malpractice.
Umbrella Policy Coverage and Limits
The cost of an umbrella insurance policy based in Oklahoma will vary. All factors such as what you own, what you do and what you earn are considered. Annually, coverage probably won't exceed more than a few hundred dollars.
Typically, umbrella policies sell in $1 million increments. Each additional million in coverage will increase the price, but the increase is usually nominal at best.
Umbrella insurance does not replace basic insurance policies. You must still maintain your legally required insurance, such as auto insurance and homeowners insurance. But by purchasing an umbrella policy, you can lower the cost and coverages of your primary policies to the legally required minimums. This may save you more in the end. And, if you purchase more than one policy from a company, you may be eligible for a multiple policy discount.
How To Get Umbrella Insurance in Oklahoma
While navigating the confusing world of insurance, you should have an agent beside you to guide you in the right direction. A Trusted Choice® agent is always available to help answer questions, suggest coverage options and even file a claim.
Contact a local Trusted Choice agent for more information.