If you carry auto or homeowners insurance, you may be asking yourself… “do I really need an umbrella policy, too?” The short answer is yes.
An umbrella policy kicks in where your homeowners and auto policies leave off – providing you with extra protection and peace of mind should the unexpected happen and a claim or lawsuit be filed against you.
Most of us participate in activities every day that put us at risk. Here are some real-life activities that signal you should carry an umbrella.
- Drive a car
- Walk your dog in your neighborhood or local park
- Have teenagers who drive your car or their own
- Carpool with other families
- Watch your friends’ children or utilize babysitters in your home for your children
- Entertain family and friends at your home
- Use social media or have a child who does
- Allow your children’s friends to hang out at your house
- Own recreational vehicles like boats, motorcycles, jet skis, and golf carts
- Have a swimming pool or trampoline
- Employ a house cleaner
- Hire someone to cut your lawn or plow your driveway
- Order online and have packages delivered to your home
- Volunteer and/or serve on a board
- Coach, referee or umpire youth sports
Americans file approximately 15 million civil lawsuits annually. With an umbrella policy of $1 million starting at about as little as $20 a month, it is one of the most cost-efficient ways to protect your family and assets. Additionally, raising the deductible on your homeowners policy from $500 to $1,000 typically reduces your homeowners premium enough to cover the cost of a $1 million umbrella policy.