Most people assume their existing Salt Lake City insurance policies have them covered. And for everyday situations, they usually do. But there’s a category of accident or lawsuit where standard coverage limits run out faster than you’d expect, and that’s where umbrella insurance earns its place.
The Gap Umbrella Insurance Fills
Your auto and home insurance policies each carry a liability limit. If you’re found responsible for an accident that results in serious injury, significant property damage, or a lawsuit, those limits cap out at a set dollar amount. Any costs beyond that cap become your responsibility.
A serious car accident involving medical bills, lost wages, and legal fees can easily exceed $300,000 or more. If your auto policy only covers up to $250,000 in liability, you’re personally on the hook for the rest. Umbrella insurance picks up where those policies leave off, typically starting at $1 million in additional coverage.
What It Covers
Umbrella insurance extends liability protection across multiple areas of your life. Common situations it applies to include car accidents where you’re at fault, injuries that happen on your property, and incidents involving watercraft or recreational vehicles.
It also covers certain liability situations your standard policies may not address at all, like personal injury claims involving defamation or invasion of privacy. Coverage specifics vary by policy, so it’s worth reviewing the details with a licensed agent before assuming what’s included.
Who Should Consider It
Umbrella coverage is often framed as something only wealthy people need, but that’s not quite right. If you own a home, have savings or investments, or could face wage garnishment from a lawsuit judgment, you have assets worth protecting.
It’s also worth considering if you host gatherings at your home regularly, have a teenage driver on your policy, own a dog, or have a swimming pool or trampoline on your property. Each of those factors increases the likelihood of a liability claim.
What It Costs
This is where umbrella insurance tends to surprise people. A $1 million policy typically runs between $150 and $300 per year, depending on your situation. Additional million-dollar increments of coverage usually cost less than the first. For the amount of financial protection it provides, it’s one of the more cost-efficient insurance products available.
The main requirement is that you carry minimum liability limits on your underlying home and auto policies before an umbrella policy kicks in.
Get Started on Salt Lake City Umbrella Insurance
If you’ve never looked into umbrella coverage, or if you looked into it years ago and moved on, it’s worth revisiting. A lot can change in terms of assets, household members, and lifestyle, and your coverage should keep up.
Reach out to our team in Salt Lake City, and we’ll help you figure out whether an umbrella policy makes sense for where you’re at right now.
