We live in a very litigious society, where million-dollar judgments for bodily injury claims are not uncommon. If someone sues you after being injured on your property or if you cause a car accident, would your home or auto insurance cover a major settlement?
You can have peace of mind with the extra liability protection offered by umbrella insurance in South Carolina.
Umbrella insurance can help you bridge the gap between your basic personal insurance policies and a million-dollar judgment against you. An independent insurance agent in South Carolina can help you find umbrella insurance that fits your needs and budget.
What Is Umbrella Insurance?
It’s important to understand what liability insurance is to understand the concept of umbrella insurance.
If you have auto insurance, homeowners insurance, renters insurance, or condominium insurance in South Carolina, you also have liability insurance as an essential part of those policies. Liability insurance protects you when you or a covered family member causes property damage or physical injury to another person.
Your auto liability insurance covers you if you cause a car accident that injures another driver or passenger. And your home liability insurance covers you if someone is injured at your home or if you or a covered family member hurts someone or damages someone’s property (e.g., your child breaks the neighbor’s window with a baseball).
Liability insurance pays for repairing or replacing the damaged property of others. It also pays for medical expenses for injured parties, and it even pays your attorney fees, court costs, and any financial settlements or judgments you have to pay if someone sues you. But both your auto insurance and your home insurance have coverage limits that are specified in the policy. If you’re sued, your policy limits may not be sufficient to cover a large financial settlement.
Umbrella insurance in South Carolina offers excess liability coverage that kicks in when the limits of an underlying policy have been exhausted.
What Does Umbrella Insurance Cover in South Carolina?
Umbrella insurance in South Carolina typically covers the following types of claims for any person that is covered under the primary insurance:
- Personal injury
- Advertising injury
- Property damage liability
- Defamation of character
- False arrest, detention, or imprisonment
- Malicious prosecution
- Mental anguish
Umbrella policies in South Carolina typically cover what the underlying policy does. Your umbrella policy may also offer expanded coverage, such as protecting you worldwide.
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Who Needs Umbrella Insurance in South Carolina?
An umbrella policy is often thought of as an extra layer of protection in our lawsuit-happy society. You can be sued for any reason, and even if a lawsuit is unfounded, you still have to defend yourself. If you’re forced to pay a financial settlement to someone who has been injured because of you or a family member, you could face financial ruin.
But is umbrella insurance beneficial for everyone? Certain lifestyle factors or activities that you pursue can increase the likelihood of being the target of a lawsuit. For example, you might be more likely to be sued if you:
- Own a home
- Own a rental property
- Have a trampoline, pool, or hot tub
- Host large parties
- Have a teenage driver
- Own a dog
- Own a large home
Anyone with significant assets or an obvious “attractive nuisance” (e.g., the pool) should talk to their independent insurance agent about the need for an umbrella policy in South Carolina.
How Much Umbrella Insurance Do I Need in South Carolina?
Umbrella insurance is typically sold in million-dollar increments, such as $1 million, $2 million, or $5 million. You’ll need to assess your net worth and evaluate your current liability coverage for your home and your vehicles to get a starting point for how much umbrella insurance you need. Your age, profession, ZIP Code, and other personal characteristics will be factored into the amount of umbrella coverage ideal for your needs.
It's necessary to have both home and auto insurance in South Carolina to purchase umbrella insurance. South Carolina does not set eligibility requirements for purchasing umbrella insurance. But you will need to have a certain level of underlying home and auto insurance as required by the insurance company selling the umbrella policy.
Can You Deduct Umbrella Insurance on Your Taxes in South Carolina?
You usually cannot deduct personal umbrella insurance premiums from your taxes in South Carolina. But you may be able to deduct a portion of your premiums as a business expense if you own rental properties that are covered along with other personal assets under one personal umbrella policy.
Your premiums may be tax-deductible if you own a business and have a business umbrella policy in addition to other business liability coverage.
What Are the Best Umbrella Insurance Companies in South Carolina?
It can be simple to find the best umbrella insurance companies in South Carolina. A local independent insurance agent can help you get umbrella insurance quotes from multiple insurance companies so that you can select the best policy for your needs and budget.
Why Shop Umbrella Insurance with a South Carolina Independent Insurance Agent?
Instead of getting an online quote, find an independent insurance agent now, and get a one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.
What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
Contact an agent today for a free, no-obligation consultation.