Residents of South Dakota have varying insurance needs, and, in some cases, this includes umbrella insurance. Whether you live an urban lifestyle in a Sioux Falls condo or prefer small town life in the Black Hills, you may find yourself in a situation where you are liable for significant injuries or property damage to another person. Fortunately, an umbrella insurance policy can provide you with extra liability protection for the times when you need it. Below, learn more about comparing umbrella insurance quotes for this important coverage in South Dakota.
Jury Awards in SD – Median Amounts
- Automobile accidents: $220,000
- Premises liability: $232,000
- Slander/Libel: $229,000
- Professional malpractice: $1,057,000
In today’s litigious society, many financial advisers recommend that their clients carry as much liability insurance as they can comfortably afford. This is because juries tend to call for very high liability awards when cases go to court.
What Is Umbrella Insurance?
Also known as excess liability coverage, umbrella insurance increases the amount of liability coverage you have on all of your currently held policies. It picks up where your home and vehicle insurance coverage leave off.
If you are liable for property damage or personal injury to another, such as through a vehicular collision or an accident in your home, your appropriate insurance policy will go into effect to cover the costs. If the amount of coverage offered by your policy is not enough to fully cover your expenses, your umbrella policy will then cover the difference.
What Are the Benefits of Umbrella Insurance?
For most people, liability charges that greatly exceed their insurance coverage limits can lead to the need to file for bankruptcy. For those who have a great deal of wealth or have built up considerable assets, the costs may be manageable but at a price. When you have a lot, you have a lot to lose.
Prosperous people are more likely targets of lawsuits and large jury awards because they are more likely to have the means to cover the high costs. The more valuable the targets, the more tenacious those filing suit become. Umbrella insurance can keep a lawsuit from forcing you to give up a large portion of the wealth you have worked so hard to build.
How Much Additional Coverage Do South Dakota Residents Need?
Many people choose to purchase vehicular liability coverage at amounts that exceed the state’s minimum coverage requirements. Auto policies typically allow you to purchase a maximum of $300,000 in liability coverage, although some policies offer up to $500,000 in coverage. Similarly, renters, condo and homeowners liability insurance usually maxes out between $100,000 and $500,000. But are these maximums high enough?
When you take into consideration that the average cost of medical treatment for injuries sustained in a vehicular accident exceeds $68,000 per person injured and the average liability costs for accidents resulting in a fatality is currently $3.2 million, the coverage offered by your auto insurance policy may not seem like so much after all.
An umbrella policy can enable to you obtain millions in extra liability insurance at a rate that is easily affordable. You can use this extra insurance to supplement all policies you currently carry.
How Much Does an Umbrella Insurance Policy Cost?
As with any insurance policy, quotes for premiums will depend largely upon the amount of coverage you want to purchase and the level of risk you present to the insurance company. Rates can vary from one insurance company to another, so it is a good idea to compare quotes from at least three different companies.
Umbrella insurance policies are relatively inexpensive given the large amounts of coverage they can provide. You may be surprised to learn that the average cost to purchase an additional $1 million in liability coverage is only about $50 a month. If you have substantial assets that you wish to protect, investing in an umbrella insurance policy may prove to be a wise decision.
Easily Compare Umbrella Insurance Quotes in South Dakota
Umbrella insurance is not right for everyone, but many people can greatly benefit from the extra liability coverage that it provides. An independent insurance agent in the Trusted Choice® network can help you evaluate your current insurance policies, scrutinize your coverage needs and determine whether umbrella insurance is a good choice for you. Your agent can work with several different highly rated insurance providers to present you with a variety of competitively priced policies from which to choose.
Trusted Choice agents are located throughout the state of South Dakota. Contact an agent in or near your neighborhood to get more information and to start reviewing umbrella insurance quotes.