Additional Liability Coverage for Lansing, Michigan Residents
Why would you need additional liability coverage provided by Umbrella Insurance? Here’s an example: Your car insurance covers a maximum of $100,000 in property damage. What if you cause $500,000 in damage and are sued in court for the excess?
Umbrella Insurance covers the additional amount set by the policy’s limitations. Umbrella policies also cover other situations that your typical car insurance, homeowners insurance, or liability policies may not cover. It can also provide additional liability coverage for boats, motorcycles, rented vehicles, and more.
Talk to an experienced local Lansing, MI Compass Insurance agent today so we can explain exactly what an Umbrella Insurance policy can do for you and your financial well-being.
Umbrella Insurance FAQs
What is umbrella insurance and why is it worth having?
Umbrella insurance is additional liability insurance coverage beyond what is covered by your existing home, auto, or boat insurance policies. It provides financial protection in the event you are held liable for damages or injuries that exceed the limits of these policies. It is recommended for anyone who wants to protect their assets and future earnings.
How much is an umbrella policy?
Umbrella insurance is usually sold in increments of $1 million of coverage. Depending on a number of factors that goes into what the umbrella insurance needs to cover (multiple homes, for example), the costs of an umbrella policy can range anywhere from $200 to over $1,000. Your local Lansing insurance agent can provide an accurate quote.
What does an umbrella insurance policy cover?
Umbrella insurance covers liability claims that exceed the limits of your primary insurance policies. This can include bodily injury, property damage, and personal liability claims as well as legal costs and claims related to libel, slander, and defamation.
How much umbrella insurance coverage do I need?
The amount of umbrella coverage you need depends on such factors as your net worth, probably risk, and the amount of primary insurance coverage you already have. A general rule of thumb is to have sufficient umbrella insurance to cover your net worth.
Why should I consider umbrella insurance?
You should consider umbrella insurance if you have assets and a high net worth that could be at risk if you are ever sued.
What does umbrella insurance NOT cover?
An umbrella insurance policy does not cover damage to your property, your own medical expenses from injuries, contract obligations, criminal actions. If you have a personal umbrella policy, it does not cover business liability.
Can I purchase umbrella insurance without primary insurance policies?
No, you cannot purchase umbrella insurance without primary insurance policies.
What happens if I am sued for an amount that exceeds my umbrella insurance policy limit?
If the amount exceeds your policy limit, you are responsible for paying the excess amount out of pocket. This is why it is important to have enough coverage to protect your assets and future earnings in the event of a large lawsuit.