Just as its name implies, umbrella insurance has you covered in case you need protection from the unforeseen storms in life. Wisconsin umbrella insurance is coverage that safeguards your financial assets in the event of a claim against you. This unique type of insurance, also known as extra liability insurance, increases your liability coverage just when need it most.
The Badger State is full of residents just like you who have worked hard to build their net worth and accumulate assets that need protecting. Consider the following facts:
Umbrella insurance is designed to broaden and increase your current liability coverage, so that a lawsuit doesn't cost you your home, savings, and future earnings.
Typically, an umbrella policy offers extra insurance in two different ways. One way is by increasing the amount of liability coverage you have on policies under it. For instance, if you have auto and homeowners insurance policies equaling $250,000, you could purchase a Wisconsin umbrella insurance policy for $1 million in added protection. By doing this, you can increase the dollar amount of your policy at a reasonable cost, while mitigating your overall risk.
The second way umbrella insurance might benefit you is by covering claims that your primary policies won’t. If you have damage claims resulting from things like libel, slander, false arrest, or defamation of character, an umbrella policy could protect you, when your homeowners policy may not.
Umbrella insurance covers settlement costs and your legal defense, after your other liability coverage has been exhausted. For instance, if a claim is filed against you after a serious auto accident, the settlement amount for medical payments, property damage, and court fees could reach $70,000. Your lawyer, working at a rate of $120 an hour to defend you, could bill you an additional $40,000 for his services. The cost for the lawsuit now totals $110,000. Let's say your car insurance liability coverage limit is only $30,000 per accident. That leaves you to pay the remaining $80,000 out of pocket. If you do not have the cash, the plaintiff could go after your home and future earnings. However, if you have umbrella insurance, the additional $80,000 would be covered, without dipping into your savings or future earnings.
Umbrella insurance might be necessary if you have assets you’d like to protect, and your primary policies wouldn’t completely cover a large claim. These assets could include your home, your savings, your personal belongings, your vehicles, your business, and any financial investments you’ve made.
This extra liability insurance covers a number of situations including auto accidents, accidents on your property, animal bites at your home and liabilities at your rental properties. Your financial responsibility in such events could be greater than your primary policy limits, making an umbrella policy a potentially wise choice. And because umbrella insurance doesn’t kick in until your other liability coverage is exhausted, the risk of a claim against your policy is lower. This typically results in affordable premiums for the amount of coverage it provides.
When shopping around for Wisconsin umbrella insurance quotes, you’ll find they’re based on a number of factors. These include your net worth, ZIP code and credit history. Your driving record and the number of teen drivers in your household can also play a role in your premium.
Finally, your risk profile will be determined by considering if you have a dog, trampoline, swimming pool or boat. These can increase your need for umbrella insurance coverage.
Working directly with an insurance company to review quotes can be limiting, in that they’ll be able to present you with their products only. Alternatively, an independent agent represents multiple top insurance companies, which means you’ll have the potential for lower premiums, and a more customized policy to meet your specific needs.
The right Wisconsin umbrella insurance policy is easy to find with just a little assistance. A local Trusted Choice® agent can help you determine your need, review your options and compare quotes. Contact a local agent to get started.