Vermont is a state full of outdoor enthusiasts and a picturesque countryside. It has a vast array of activities to satisfy all types of interests. Whatever you enjoy, it's important that you have protection from litigation stemming from injuries or accidents. Umbrella insurance is the perfect way to protect your active lifestyle and assets. Before getting quotes on an umbrella policy, you should learn about the “whats” and “whys” of getting this type of insurance.
Lawsuits Can Happen to Anyone
- There are more than 15 million lawsuits filed every year.
- 80% of the world's lawyers live in the United States; the majority live in New York.
- About 9 out of 10 tort trials involved personal injury issues such as product liability, motor vehicle accident and marine and medical malpractice cases.
- Plaintiffs won 48% of tort trials.
People living in such a litigious society face the risk of lawsuits daily. Even a simple slip and fall on your doorstep can turn into a lawsuit costing hundreds of thousands of dollars.
What Is Umbrella Insurance?
Umbrella insurance is termed that for a reason. It literally provides extra liability insurance that bolsters your other primary policies. It provides extra insurance over and above what your current policies cover. The policies it can cover include auto insurance, professional liability insurance, homeowners insurance, boat insurance, ATV insurance, trailer insurance and aircraft insurance. It raises your liability limits, meaning that you have coverage in case any injuries that exceed your current policy's limits occur.
An Example of Umbrella Insurance Protection
Let's look at an example of how you would fare in the case of vehicular accident. If you were driving your vehicle and you were at fault in a serious auto accident, the injured party could sue you. Let's say you had to pay $500,000 in damages to the injured party. And assume your auto insurance had policy limits of $250,000, meaning that you would be paying the remaining $250,000 out of pocket. If you had a $1 million umbrella policy in place, the umbrella insurance would cover the extra $250,000. The same would apply for accidents at your home or on your boat, and other injuries that you may be liable for.
Umbrella insurance does not cover instances where the insurer deems the incident "uncovered," however.
What Does Umbrella Insurance Cost in Vermont?
Insurers typically sell umbrella insurance policies $1 million increments. You may get as much or as little umbrella insurance as you feel comfortable with. Quotes for umbrella insurance will depend on your lifestyle, the amount of coverage, the personal assets you want to protect and the level of your exposure to risk. For example, high-net-worth individuals are usually at a higher risk of lawsuits. Once you purchase $1 million in umbrella insurance, however, there are usually price breaks on additional $1 million coverage increments.
Many individuals find that there are cost savings with umbrella insurance in place, as this allows you to lower your liability limits on your primary policies to the legal minimum.
How Much Umbrella Insurance Does a VT Resident Need?
Just as people's net worth and lifestyle differ, their needs for umbrella insurance also differ. An individual who has a riskier lifestyle, who has a high net worth or who entertains often may face more risk than those who work a typical day job and live in the suburbs.
In order to get a good picture of how much umbrella insurance you need, you should take an inventory of your assets. Consider your home, your vehicles and your possessions. Give these a total. Additionally, you should consider any future earnings, rental properties, investments or inheritance you may receive in order to protect those, as well. It's important to protect your entire life under an umbrella insurance policy.
Umbrella Insurance Discounts
There are discounts available on almost every policy, umbrella included. Always be sure to inquire with your agent about discounts available, such as the following:
- Multiple-policy discount
- Longtime customer discount
- New customer discount
- Claim-free discount
- Good driver discount
- Safety course discount
- Military/Industry affiliation discount
These are just a few of the discounts available to you as a Vermont resident. Every insurance company gives different discounts, so be sure to ask for quotes that include all available discounts.
How Do You Get Umbrella Insurance in Vermont?
Whether you already have umbrella insurance or you're just starting to look at umbrella insurance quotes, it's important to find out as much as you can before purchasing. A Trusted Choice® agent is always available to help answer questions, suggest coverage and even file claims.
Let a Trusted Choice agent help you. Contact a local agent in your neighborhood for more information.