It’s raining lawsuits. Do you have an umbrella? You may not think you will ever be subject to the litigation process, but in modern “sue-happy” society, can you afford to take that risk? Umbrella insurance policies are designed specifically provide the extra liability insurance you need to protect you from the threat of lawsuits.
Before you search for umbrella insurance quotes, however, there are several factors to consider.
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Who Is at Risk for Lawsuits?
According to lawsuit trackers:
- A 32-year-old sued his parents for $200,000, saying that they had been “indifferent” to his problems.
- A knife-wielding robber sued a would-be victim, claiming the store lacked “a policy regarding the safe and lawful use of firearms” after the owner shot and injured him.
- An intoxicated driver pleaded guilty to manslaughter, then sued the victim.
- A woman filed a $5 million suit for the leftover gas still in her repossessed car.
- A 13-year-old Little Leaguer was sued by a spectator who was hit with a baseball.
- A restaurateur was sued for disabilities act violations in a parking lot he didn’t own.
So who needs umbrella insurance? Apparently, everyone from teenage ball players to business owners and from parents to crime victims. In short, anyone can benefit from the extra insurance protection of an umbrella policy.
What Is Umbrella Insurance?
Umbrella insurance policies are specifically designed to protect policy holders from litigation.They provide extra liability coverage for legal and attorney fees, and can even assist you in settling a claim.
Umbrella insurance is a form of extra insurance that will supplement liability limits on your basic policies, such as your auto, homeowners or renters insurance. An umbrella liability policy covers a much higher limit and goes above and beyond claims directly relating to your home or vehicle.
The main purpose of your umbrella policy is to protect your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injuries. It can also protect you from the types of frivolous suits mentioned above. If another party files a lawsuit against you, your umbrella coverage will pay for the damages you're legally responsible for up to the policy limit.
Why Is Umbrella Insurance Important?
While the absurdity of some lawsuits make us wary of becoming involved in a ridiculous lawsuit, nearly 80 percent of all umbrella insurance claims in OR and across the country are due to vehicle collisions. If you are sued as a result of causing injury or property damage to another motoris, your basic car insurance limits can be quickly reached. Umbrella insurance offers that added layer of protection to ensure your personal finances and future earning potential are not in jeopardy.
How Does Umbrella Insurance Work in Oregon?
Your umbrella insurance can help if you are found liable and need to pay damages, or if you are sued and need to pay for your legal defense – even if in the end you are not found to be responsible.
An umbrella policy only pays once your basic liability limits have been reached or the claim is excluded from your basic liability coverage. The claim will be made against you, the policyholder, on behalf of the wronged party. Then your insurance company may pay the settlement amount up to the limits of your coverage. If the settlement amount exceeds your coverage limits, you are responsible for paying the remaining amount out of pocket.
How Much Umbrella Insurance Do I Need?
You make be thinking the targets of lawsuits must have been wealthy, or why bother, right? Unfortunately, many OR residents who are solidly middle class find themselves facing a lawsuit looking for the hundreds of thousands, if not millions, of dollars in payouts.
When choosing your coverage limits, consider three things:
Your risks: Consider risks as a homeowner or renter, the risk of causing an accident during your work commute, and any potentially dangerous activities you participate in that could put those around you at risk.
Your assets: These include properties, possessions, stocks, bonds, and savings and retirement funds. The more assets you have to protect, the higher the umbrella policy limit you should consider.
Your future: Because liability lawsuits can result in loss of both current assets and future income, even those with few assets to protect may want to consider the long-term ramifications of a serious claim.
When you review your future income, consider your earning potential. You may not have many assets now, but if you’re on track for a high-paying career, you could be involved in a lawsuit that can target money you haven’t earned yet.
What Will My Umbrella Insurance Quote Look Like?
In today's litigous society, you don't have to be a millionaire in order to be sued like one. Fortunately, you also don't need Swiss bank accounts in order to secure the extra insurance protection that an umbrella policy offers.
Quotes for an umbrella policy typically start around $150 to $200 for a $1 million policy. Your quote will be higher if you decide you need more than a $1 million policy. However, getting twice the amount of coverage and increasing the policy limit to $2 million will not usually double the cost of your premium. Few OR residents realize how affordable the additional protection of umbrella insurance can be, and are suprised to learn how much security they can purchase for a relatively small investment
Where Can I Find Umbrella Insurance in Oregon?
You have worked hard for your iincome and the assets you have acquired. Protect them from litigation, whether frivolous or less dubious, with an umbrella insurance policy. Knowledgeable, independent insurance agents on the Trusted Choice® network are always available to answer your questions and even assist you in filing a claim.
These agents can help you find a number of umbrella insurance quotes from a variety of Oregon companies, ensuring the policy you purchase will offer the best coverage at the most affordable rates. Contact a Trusted Choice member agent near you to find out how you can obtain the perfect umbrella insurance policy that meets your needs and budget.