Our nation’s capital is home to many high net-worth individuals. If you are among them, you may be concerned about protecting your personal assets from liability lawsuits. Fortunately, an umbrella insurance policy can help residents of Washington, DC get extra insurance so that large liability verdicts and legal defense fees do not cause financial devastation. If you have never before considered such a policy, you may want to look into umbrella insurance to discover just how little it costs to obtain this coverage.
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Examples of High Liability Awards
- A consultant in Florida was awarded $11.3 million in a lawsuit against a Louisiana woman who was accused of posting defamatory. statements about the plaintiff on an online message board
- In Texas, the owners of two dogs who mauled and killed an infant were ordered by pay a judgment of $7 million to the infant’s family.
- In Pennsylvania, a driver responsible for causing a spinal cord injury to a four-year-old boy in a car collision was ordered to pay restitution in the amount of $29 million.
- In New Jersey, a driver who struck a pedestrian who suffered permanent scars and mild brain damage was ordered to pay the victim $19 million in damages.
Umbrella Insurance Gives You Extra Liability Protection
If you own a home or a vehicle, chances are you already have a measure of liability protection. However, in the litigious society in which we live, the limits of this coverage are not always enough. Residents of DC who have a lot of assets have a lot to lose if the liability coverage afforded by their current insurance policies does not sufficiently cover them against lawsuits that may be brought against them.
If you want to ensure that your personal property and investments will not be depleted by an expensive lawsuit, consider an umbrella insurance policy. These policies take over where your other policies leave off. They provide an inexpensive way to add millions of dollars of extra liability coverage to the insurance policies you already have.
Umbrella Insurance Can Supplement Your Auto Insurance
In Washington, DC, the minimum liability coverage that must be carried by motorists is 25/50/10. This is to say that you must have a minimum of:
- $25,000 in bodily injury coverage per person injured in an accident you have caused
- $50,000 in total bodily injury coverage per accident for more than one injured person in an accident you have caused
- $10,000 in property damage coverage
The danger comes when the accident leads to severe injuries or death. In these cases, you may find yourself owing far more than what your insurance policy will cover.
Of course, many people, particularly those who own a lot in assets, choose to purchase much higher liability amounts with their vehicle insurance. The higher your net worth, the higher the chances that the injured parties will pursue a lawsuit against you.
Auto liability insurance coverage usually maxes out at between $300,000 and $500,000, depending on your insurance provider. Unfortunately, lawsuits related to serious injuries and fatalities can lead to judgments of more than $1 million. This is where the extra liability coverage afforded by umbrella insurance comes into play. If you have a policy, your car insurance provider will compensate the injured party up to your policy limit and then your umbrella insurance policy will cover the rest.
Umbrella Insurance Can Supplement Your Home Insurance
Whether you have homeowners insurance, condo insurance or renters insurance, your home policy will provide you with liability coverage. In addition to covering most personal injuries and property losses that third parties may experience while on your property, this covers damages caused by your children or pets, charges of libel and slander, and some other types of liability charges, depending on your policy.
Again, if you own a lot of assets, injured parties are more likely to come after you for excessive damages. If these suits go to court, juries have a tendency to issue large awards to injured parties as a way of making a statement. Legal fees for your defense can add up as well.
A typical homeowners insurance policy tops out at about $500,000 in liability coverage. If there is a large judgment against you, that judgment plus your legal fees can lead to high out-of-pocket costs. Unless, that is, you have the extra liability coverage provided by an umbrella policy.
Umbrella Insurance Can Supplement Other Liability Coverage
Liability insurance coverage is not limited to homes and cars. You may have several other insurance policies that qualify for additional coverage with an umbrella policy. For example, if you own a boat that is docked at National Harbor or you like to take family vacations in a luxury recreational vehicle, you are also likely to have insurance coverage for these items.
Again, under these policies, your liability coverage is limited. It makes sense to pay a few extra dollars each month to get the extra insurance coverage that will protect you from undue financial losses.
Are Policy Quotes for Umbrella Insurance Very Expensive?
When you start shopping around for umbrella insurance quotes in DC, you may be very pleasantly surprised by the affordability of this very important coverage. In fact, the average cost of a policy that will provide you with $1 million in coverage is around $200 a year.
The more coverage you buy, the less it costs per million, so a $5 million policy may cost as little as $600 a year while a $10 million policy can be purchased for about $1,000 a year.
Factors that go into calculating costs include:
- The number of drivers in your household, as well as their ages
- The number of cars you own
- The number of homes you own
- The number and types of luxury items you own (RVs, boats, water scooters, etc.)
Compare Umbrella Insurance Quotes in Washington, DC
Independent insurance agents in the Trusted Choice® network are available to answer any questions you may have about liability insurance and to assist you with determining your coverage requirements. These agents can then work with a number of insurance providers to present you with a selection of competitively-priced policies that meet your needs.
Find a Trusted Choice agent near you today to get more information and to start comparing a variety of umbrella insurance quotes.