How Umbrella Insurance Plans Save You More

What is Umbrella Insurance Anyway?

Imagine it’s pouring down rain. You are wearing your suede jacket and not happy about the unforeseen weather change. Thankfully you have your umbrella with you: reach in, grab it, and whew! Problem solved! Umbrella Insurance is just like that. You aren’t ruining your suede jacket, but you are protecting your hard-earned savings from life’s accidents. An umbrella liability policy covers much more than your auto and home policies, and can make a long-term difference in your financial health.

Why Do I Need It?

No one likes insurance until they need it; then, they are grateful to have it. The umbrella protects your financial assets from an event you didn’t see coming. Say you were involved in a car accident, and the court decided you were responsible for damages and bodily injuries to the other party. If they were to file a lawsuit against you and you didn’t have an umbrella policy, you would be legally responsible for the damages and that can deplete your savings in a hurry.

What Does It Cover?

It covers the extras that your basic coverage does not. In the case of the car accident, it will cover the extra expenses of the others involved beyond what your normal policy does. It can also cover you for legal fees, false arrest, libel and slander.

Okay, You Have My Attention: How Does It Work?

Let’s go back to the car accident. The court found you liable for the wreck, and there are people who are hurt and a car that is totalled. You are sued and need to pay for your legal defense. Umbrella policies pay once your basic liability limits have been reached.

So Assets Matter!

What are your financial assets? Your house certainly. Add your cars, your investment and retirement accounts, and don’t forget your checking and savings accounts. If someone decides to sue you for a lot of money and you don’t have the policies in place to take care of what the court says you owe, your assets can be liquidated to pay your debts. Imagine that one bad mistake, one traffic accident, can ruin you financially because you did not have an umbrella plan in place.

Got It. How Much Does It Cost?

Our team at Partners Direct Insurance have a mission of making sure we look at each client’s needs individually, in order to design a custom insurance package that works. We want to be sure that you have the coverage you need, without overpaying. Getting an umbrella policy for $1 million worth of coverage can be very affordable. Our team can help design a plan that works for you.

How Much Do I Need?

That depends. Think about a few things, and talk with our partners to get the best deal for you.

  • How risky are you? Do you skydive? Race sports cars?
  • How much are your assets worth? The more property, stocks, and retirement funds to protect, the higher the umbrella policy to consider.
  • What would it cost you to lose your future income? If it would be devastating, you need more coverage.

Can I Write It Off My Taxes?

Generally speaking, personal umbrella policies are not tax deductible. However, if you own a business, an umbrella policy can mean your premium is tax deductible. This is another reason why it is important to have our team counsel you on what works best for your individual needs.

Let’s Talk!

At Partners Direct Insurance, we partner with our clients to make sure they have the best umbrella policy for their particular needs. Call us and we can discuss what makes the most sense for you, to keep you covered!