What is Umbrella Insurance?

Think about an actual umbrella, what does an umbrella do for you? Obviously, an umbrella is something that can help protect you from the elements whether it be rain or snow which is typically where we live in Tiffin, Ohio. An umbrella is something you throw in your car for a rainy day or have on hand in one of your go-to bags. In short, an umbrella is there just in case you need it. That’s exactly what an umbrella insurance policy is, it’s protection that is there in case you need it. Hopefully, you will never need to use your umbrella insurance policy but if you do it will be there ready to help.

You don’t have to be a millionaire to lose a million dollars in a lawsuit.

You’ll be surprised at how affordable this valuable protection can be when you think of everyday situations that could jeopardize your financial security. This extra protection is known as an Umbrella Insurance Policy, or Umbrella Policy protects your financial assets from the following situations:

  • You’re at fault in an auto accident, critically injuring a mother and a young child. A jury awards 1.7 million dollars for medical expenses.
  • You and your next-door neighbor are cleaning the gutters at your home. Your Tiffin Ohio neighbor falls two stories resulting in disabling injuries. He is unable to work for 6 months and a jury finds you at fault, awarding 2.5 million dollars compensation to your neighbor.

These are just a few real-life examples covered by an umbrella policy.

A day in court can cost you a lifetime’s work…

“Lawsuit” is a scary word to most of us. That’s why we purchase personal insurance to protect ourselves and our families. However, many people assume their auto or home insurance will provide all the liability insurance they need. That’s not necessarily true! Not only are your physical assets at stake, but your retirement funds and your savings accounts are actually at risk when it comes to your personal liability exposure. Your home in Tiffin Ohio is surely nice and valuable, but I’m guessing that without your retirement accounts, you would be hurting just as much if not more than if you lost your house. It can be very scary to think about, but that’s why we are here to help you plan ahead. You can reach one of our professional insurance agents right now at 419.447.9900!

Personal umbrella liability insurance provides you with an extra layer of personal liability insurance — in addition to your current home and auto insurance. And that can be important coverage if someone is injured in a vehicle accident or in your home. The possibilities are endless when it comes to scenarios where you could be sued. In today’s day and age, even in our great community in Tiffin Ohio, we are more likely to be sued for something years ago would have been laughed off. Whether or not you are actually found guilty of what you are accused of, the court costs themselves can mount up to be a small fortune!

Jury awards in personal liability lawsuits in Tiffin Ohio are unpredictable and often very expensive. With the strike of a judge’s gavel, all of our assets that we’ve worked so hard to obtain can be taken away — leaving our families exposed to financial ruin. The last thing we want to happen is for you and your family’s future to be put at risk. We really encourage our clients to seriously consider an umbrella policy in their planning, so that we never have to have a conversation of “what if I would have planned better?”.

How much does an Umbrella Policy in Ohio cost?

Personal Umbrella Insurance is a relatively low-cost way to provide additional coverage if you’re sued for bodily injury or property damage beyond the limits of your existing policies. Coverage is usually issued in one million dollar increments, typically in the one to five million dollar range. For about $150 to $300 per year, you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowner’s policy before selling you an umbrella liability policy for $1 million of additional coverage.

If you are a Tiffin Ohio business owner or farmer, which we would certainly consider a business owner in Seneca County, you could literally lose the farm or business if you were involved in a major lawsuit. Even though LLCs and other business corporations do provide a layer of protection between the business and you as the owner, that isn’t always enough. It is important that you have that extra layer of personal protection that an umbrella insurance policy offers.

Why work with us?

The Roger Smith Insurance agency is based out of Tiffin, Ohio located in lovely Seneca County. We have years upon years of experience with our seasoned staff, and we truly do love seeing our clients and knowing that they are fully protected and that they have purchased insurance that meets their needs. This means that we won’t ask you to buy insurance that you don’t need and we will recommend the coverage that you actually do need! An umbrella insurance policy is a great add-on to many client’s risk management plan because it is relatively low cost and truly covers you personally for millions of dollars in damage. Many people consider the cost of their home and the cost of their vehicles when they are purchasing insurance, but most people don’t consider their personal wealth. When you think about how much you are risking when it comes to your personal liability it can be scary. Ask us today about an umbrella policy and how it could potentially help protect you and your family! You can give us a call at (419) 447-9900 or just stop into our Tiffin Ohio office at 720 West Market Street!