You have home, auto, and maybe even watercraft insurance. Why could you possibly need more coverage?

The truth is most people don’t understand the limitations of their policies and how a Rhode Island umbrella insurance policy can serve them.

What is Umbrella Insurance?

Every insurance policy has a maximum liability limit and in some cases it may not offer sufficient protection. Umbrella insurance provides additional liability coverage beyond the limits of your existing policies.

Who Needs Umbrella Insurance?

Determining whether you need umbrella insurance depends on several factors. Usually it benefits anyone who has significant assets, because it provides an additional layer of security to protect you from the financial implications of a lawsuit.

Take a few moments to roughly calculate your total assets including your homes, cars, boats, stocks and bonds, savings, and your potential future earnings. In some cases, you may not need to include the entire value of your primary residence or small dwellings used for residential and commercial use. Our insurance agency can provide you with specifics.

Next, check the liability coverage limits on your homeowner, auto, and other policies. If your assets exceed your policy limits, you should talk to us about an umbrella policy.

Umbrella insurance is useful in other situations too. If you own a trampoline, pool, or dog they could harm others and your existing liability coverage may not provide sufficient protection. Equally, some sports such as skiing and hunting could also cause harm to others and leave you at financial risk if you’re sued.

You may also want to consider an umbrella policy if you volunteer, serve on a non-profit board, coach kids, rent property, or post reviews of businesses or individuals.

Lawsuits are Costly

Lawsuits aren’t uncommon and they are often lengthy and costly. You could be sued for property damage or injuries and that can quickly eat up your existing policy limits.

As an example, your auto policy may have a $100,000 bodily injury liability limit. You’re sued for medical expenses, lost wages and pain and suffering for a total of $500,000. Your auto policy only pays up to $100,000, but you’re responsible for the remaining $400,000.

Luckily, an umbrella policy would kick in once you’d exhausted your policy limit. Policy limits start at $1 million and in some cases you can buy up to $10 million. These policies are very reasonably-priced since they’re only activated after your primary coverage.

Additionally, standard policies may not cover lawsuits for slander, libel, and other concerns. Umbrella insurance may protect you from the costs associated with these risks.

Don’t Risk It All

If you’re sued and you don’t have sufficient coverage, the expenses come out of your pocket. That can create a significant financial hardship and even impact your future earnings.

Considering the reasonable cost of an umbrella insurance policy, it doesn’t make sense to risk it. Call our agency to discuss your coverage and get the advice and protection you need today. Rely on a single insurance agency and enjoy improved convenience and discounts.

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