Tips when buying an umbrella insurance policy

In today’s litigious society, carrying an umbrella policy over your primary liability policies is becoming increasingly essential to protect one’s finances. If you would like to learn more about the benefits of umbrella coverage and live in the Waukegan or Gurnee, IL area, reach out to an agent at  Statewide Insurance Solutions today. 

When looking to purchase an umbrella insurance policy, one of the first things you will need to do is work with your agent to determine the amount of coverage you should carry. There are a variety of factors you will need to consider to come up with the appropriate coverage amount. 

The first consideration to take into account is the type of activities you participate in that might increase your likelihood of a claim. For example, if you are involved in a carpool with other people’s children, you may want to consider a higher limit or if you have a pool in the backyard. 

Another consideration is to account for all the assets you need to protect. You will want to look at all of your assets such as bank accounts and retirement funds and personal belongings that could be at risk as a result of a lawsuit. In addition to current assets, you will want to look at your future earnings, as those can be at risk in a lawsuit. 

In addition to working with your agent to come up with an appropriate coverage limit, you will need to make sure your primary policies have the correct limits. Most umbrella insurance carriers will require you to carry minimum limits on your primary policies, so your agent can work to adjust your policies as necessary. 

Finally, you will want to confirm how defense costs are covered. The defense costs need to be covered outside policy limits. If your defense costs reduce your policy limits, you will quickly find yourself with little to no limits left on the policy. 

If you would like to speak to a specialist about umbrella coverage, reach out to an agent at Statewide Insurance Solutions today. We proudly serve the Waukegan and Gurnee, IL area.