How Umbrella Insurance Benefits YouYou may have heard of an umbrella policy in regards to auto or homeowners insurance, but do you know what it means or how it can provide a safety net when situations turn to devastation? Umbrella insurance is designed to help safeguard you and your assets from overwhelmingly large liability claims and/or legal judgments and without it could deplete any financial foundation you may have within a matter of minutes. Knowing how umbrella insurance can provide protection for a low cost can significantly impact your financial future. 

Consider This Situation…

Your teenage son/daughter is graduating from high school and you decide to host a graduation party in the back yard, equipped with a fire pit, grill and lots of fun and games. The party is running smoothly and you have been monitoring the party; however, someone, unbeknownst to you, has snuck in alcohol and the party starts to get rowdy.

Before you know it, someone at your party falls into the fire pit, suffers serious burns, and is transported to the burn unit at the hospital. Now, you are faced with gargantuan medical bills and a hefty lawsuit, yet only carry $300,000 limits of liability under your Alabama homeowners insurance policy. Not only that, but you are faced with charges of serving alcohol to minors at your home and a legal judgment could be awarded against you in the amount of 1 million dollars or more.  As you can see, this innocent party turned nasty quickly and now your assets are up for grabs, unless you have an umbrella insurance policy in place.

Umbrella Insurance Can Help You Land on Your Feet 

Umbrella insurance, otherwise known as “excess” insurance is designed to provide coverage in excess to what the limits of liability are on a primary policy, such as an auto or homeowners insurance policy. If a claim, such as the above referenced, exhausts the Alabama homeowners liability limits, then the umbrella insurance policy would kick in for the additional amount of the claim and/or legal judgment, up to the acquired limits of the umbrella insurance policy.

Without an umbrella, YOU are responsible for anything above and beyond the limits of liability on your personal insurance policy (such as auto or homeowners). This means all of your assets may be targeted and depleted, such as your home, car, savings, inheritance, future wages, and retirement.

Umbrella 101

  • Typically, personal umbrella policies are offered in million-dollar increments, from $1 to $5 million.
  • Regardless of income, everyone needs an umbrella.
  • Umbrella insurance offers low cost asset protection for those types of situations that are serious in nature. Contact your local Alabama independent insurance agent for a quote today.
  • An umbrella policy can only be activated once the current primary policy limits have been exhausted.
  • Your local Alabama independent insurance agent can assist you with determining the amount of umbrella insurance that is right for you.

Protect Your Assets Today 

Nobody likes being faced with serious, legal situations, but sometimes life happens and within short order, your financial future may be jeopardized. Being prepared for the unexpected by having an umbrella insurance policy in place will provide peace of mind that your assets and financial security can be protected. Contact our offices at 256-704-7400 with any questions you may have regarding umbrella insurance and how it can protect you today!