The Importance of Personal Umbrella Coverage

The Importance of Personal Umbrella Coverage

September 3rd, 2017 — Martinson Agency LLC — Chaska, MN

Your auto and homeowners insurance policies are designed to keep you protected, but sometimes that isn’t enough. Unfortunately, bodily injury and damages from a bad at-fault accident can quickly exhaust the liability limits of your standard insurance policy.

A personal umbrella policy is an extra layer of protection that goes above the normal homeowners and auto insurance liability limits. It provides higher limits and broader coverage, and can help pay legal defense costs you may incur after your basic insurance policy limits are exhausted.

Here are a few reasons why you should look into purchasing a personal umbrella policy:

  1. Protects your assets. Having a personal umbrella policy helps ensure your assets—your car, home, investments, retirement accounts, checking and savings accounts, and even your future income—are protected in case of an unforeseen accident that exceeds your auto or homeowners limits.
  2. Better protects you. You are protected for incidents that you might not even consider, such as if you are liable for injuries while renting a boat or Jet Ski, or even driving a car provided by your employer.
  3. Offers peace of mind. An umbrella policy provides peace of mind that you, your loved ones, and your assets are protected against large lawsuits.
  4. Covers legal fees. The costs of legal defense can be staggering and must be paid even if you win. A personal umbrella policy can help offset these costs without draining your savings.

If you haven’t considered the added protection of an umbrella policy give our office a call so we can answer any questions that you may have. In most cases an umbrella policy is the most affordable coverage you can buy. Don’t leave your insurance to luck! Call Martinson Agency today!

Martinson Agency LLC – Chaska, MN

(952) 314-4400

In The Storm of Life, Don’t Get Caught Without an Umbrella

In The Storm of Life, Don’t Get Caught Without an Umbrella

June 6th, 2016 — Martinson Agency LLC — Chaska, MN

If you’ve ever found yourself caught out in the driving rain with nothing but the clothes on your back for protection, you know what kind of a miserable experience that can be. With all that wetness and cold, its effects can leave you longing for the comfort of the indoors.

All of that goes away, though, with an umbrella as your guide, shielding you from the storm.

This is kind of how umbrella insurance works, armed with the financial protection and rest assurance that you’re covered when the storms of life come your way.

Homeowners insurance and auto insurance are policies that provide you with the financial assistance you need when there’s an accident or storm and damage results. The proceeds of insurance pays for what repairs are needed up to the limits of the policy. Occasionally, though, the price of having something fixed may exceed what insurance provides for.

This is where umbrella insurance kicks in. It serves as an extra layer of protection during situations in which you may be liable. Think of it as an insurance policy for the coverage you already have.

In Legal Situations, Umbrella Insurance Can Be a Lifeline

Perhaps the best example of when umbrella insurance comes in handy is if you’re ever brought to court. As it is, auto insurance, for example, pays for the legal fees associated with putting on a defense if someone sues you for damages after an accident. It also provides the compensation needed for reward settlements, but it may not always be sufficient.

Being sued may not seem like something you’d ever have to deal with, but there are an almost limitless number of scenarios wherein you can be caught up in a legal spate, given the litigious nature of society.

For example, say you go out of town. Your teenager throws a party while you’re away, and drinking is involved. A guest leaves the party after having one too many and gets into a serious car accident. Their parents decide to sue to pay for the medical bills, and the settlement is more than what your homeowners insurance provides for. With an umbrella insurance policy, you won’t have to worry about paying out of pocket, because the proceeds go over and above your standard policy’s maximum.

Perhaps you have a dog that, in the course of play or after being startled, bites a neighbor or passerby while you’re out for a stroll. Dog bites account for more than one-third of all homeowners insurance liability claims, according to the Insurance Information Institute, with the average claim costing more than $33,700.

Generally, this should be enough to pay for the medical bills associated with treating a dog bite. If you’re sued, however, the penalty could be more. Once again, umbrella insurance protects you from financial ruin.

Policies Are Eminently Affordable

Besides its financial cover, perhaps the best part of umbrella insurance is that it’s extremely affordable. Premiums can range between $150 and $300, according to estimates, providing you with $1 million worth of coverage. Should you want more than that – umbrella coverage usually comes in million-dollar increments – you’ll spend even less, typically under $100.

According to a poll of senior litigators and attorneys, more than half said that they considered today’s litigatory environment to be unfair and unreasonable, according to the U.S. Chamber of Commerce. When asked to point to a specific reason for this, a common response was excessive damage rewards.

With umbrella insurance, you’ll worry much less about the financial ramifications of a lawsuit. For more information, speak with an agent at the Martinson Agency today.

Don’t leave your insurance to luck! Call today us today!

Phone: (952) 314-4400