Umbrella insurance is liability insurance that applies to liability claims against you that are larger than those covered by your primary home and auto insurance policies. It is not a policy that is required by law in Longwood, FL. However, Express Insurance experts advise that you purchase this coverage to provide for those unpredictable moments when you find yourself in a situation where the liability costs far exceed the limits covered in your primary insurance. You qualify for the umbrella policy in Florida only if you own auto insurance liability protection that carries a bodily injury liability limit of 250/500 and a homeowner’s insurance liability of $300 000. When the claim against you is larger than those covered amounts, the umbrella insurance policy coverage will start.
You may wonder, why in the world would you need additional cover if you already are covered by the basic policies. The limits covered on those policies seem like a large amount until you find yourself liable for another’s medical bills that can run up to millions of dollars. What will you do then? According to the law, if you cannot pay your liability obligation, the state will claim your savings and retirement policies in an attempt to cover the outstanding amount. Once depleted, it may take many years to restore your savings and retirement provision. To protect yourself from financial hardship on top of dealing with the traumatic event in your life, the umbrella insurance policy will protect you against such a devastating financial loss.
So, how much umbrella insurance coverage do you need? It depends on personal circumstances. The best way to ensure that you buy enough coverage is to discuss your needs with Express Insurance experts in Longwood, FL.