I Don’t Need an Umbrella…or Do I?

You could be found to be highly negligent for your actions behind the wheel of car and required to pay thousands upon thousands of dollars for an accident you cause.  Sitting at red light the other day, I counted the number of drivers on the phone while I waited for a light to change from red to green.  Greater than 50% of the drivers were on the phone, a few other drivers drinking their coffee, another eating her lunch. 

We are a society that seeks to multi-task while we drive and most states have laws that seek to define these “distractions” as fineable offenses.  If one of these distractions happens to be the cause or the claimed cause of an accident you may be found negligent or negligent to a higher degree.  Does your insurance cover you for a loss like this?  Do you have enough insurance to cover a loss like that?

Umbrella coverage is a liability policy that sits over-and-above the limits of your automobile and homeowners insurance coverage.  In the event that your automobile and homeowners insurance coverage pays out its maximum limits of insurance, the umbrella coverage kicks-in and pays up to the umbrella limit of insurance.  Umbrella limits are commonly purchased in values of $1,000,000 to $5,000,000.  These additional limits of insurance don’t pay to fix your car or your home, but instead seek to protect your assets by offering a legal defense if you end up in a courtroom or if you become financially responsible for a loss that you caused.

Most every state has laws that will hold drivers accountable for bodily injury or property damage caused by the negligent driver.  That at-fault driver can be sued for damages and be held personally liable even after your automobile insurance limits have maxed-out.  Courts can seize your assets and even attach your future earnings to pay for damages awarded.

Who needs an umbrella policy?  Someone who owns a car, a family with young drivers, someone who owns a home, a home with a pool, an owner of recreational vehicles like a motorcycle, snowmobile, a boat or a motorhome.  An umbrella is for someone that is responsible enough to understand that they have assets they want to protect with limits of insurance.

Is there any good news?  Yes…talk to one of our agents about getting a quote for umbrella coverage.  For the average household, a $1,000,000 umbrella may cost anywhere from $160 to $260 a year.  That is insurance money well spent for peace-of-mind in this litigious society.

Keith Beausoleil, CPCU

Keith Beausoleil is an insurance agent at Fortified Insurance Agency. Fortified Insurance Agency in Manchester NH specializes in coverage for auto insurance, automobile insurance, home insurance, homeowners insurance, renters insurance, condo insurance, RV insurance, motorcycle insurance, boat insurance, personal watercraft insurance, PWC insurance, snowmobile insurance, golf cart insurance, business insurance, commercial insurance, surety bonds, rental property insurance, and more. Talk to our professional insurance agents about coverage in New Hampshire (NH) today or refer us to someone who needs an independent insurance agent.