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How Much Umbrella Insurance Coverage Do I Need?

If you are interested in umbrella insurance, you may wonder how much coverage is enough. At Oak Ridge Insurance Services in Oak Ridge, NC, we offer umbrella insurance.

Umbrella Coverage Requirements

Firstly, it’s vital to ensure you meet the requirements to purchase umbrella insurance. Before purchasing an umbrella policy, you’ll typically need the maximum coverage amounts on your home and auto policies. This reduces the likelihood that you will need the umbrella policy.

Determining Net Worth

The simplest way to decide how much umbrella coverage you need is by adding all your assets. This includes savings, retirement accounts, property, and any other assets you have. Then, subtract your liabilities, including credit cards and loans. The result is your net worth.

You’ll want umbrella coverage equal to or higher than your net worth. If you are sued, your assets won’t be in jeopardy in most cases.

Considering Future Earnings

It is also critical to consider your future earnings. A judge can garnish your future wages or income if they rule against you. You may be paying for the claim for many years without umbrella insurance.

This is why umbrella insurance is a good idea, even if your assets total less than 1 million.

Consider Your Risk

Lastly, it would be best if you considered your risk. Do you own a dog or a swimming pool? If so, you are at a higher risk of being sued. Are you relatively well-known in your community? This also can increase your risk.

Umbrella Insurance Increments

Umbrella insurance is designed to protect you from catastrophes and is known as catastrophic insurance. Because of this, it is typically sold in increments of 1 million. Most policies will allow you to choose coverage between 1 million and 5 million, but some policies may go up to 10 million or more.

What are the Key Benefit of Umbrella Insurance?

Do you live, work, or play in and around Oak Ridge, NC, and are looking for an effective way to enhance your current liability insurance? If so, an umbrella policy might be an innovative and affordable solution. According to the insurance professionals at Oak Ridge Insurance Services, the fundamental purpose for obtaining umbrella insurance is the extra protection it offers regarding the coverage of legal costs and resulting damages that exceed the upper limits of existing insurance policies.

More specifically –

  • Umbrella Insurance is a type of insurance coverage that is activated when an insured individual reaches the limits of an existing policy.  
  • Umbrella Insurance provides a practical option that allows someone to safeguard their financial future.

Umbrella Insurance – The Key Benefits

Because umbrella insurance adds liability coverage over and above the limits of existing insurance policies – i.e., an auto, home, or boat insurance policy, it provides enhanced protection (and peace of mind) against unanticipated and disastrous events.

Umbrella insurance is typically available in various or optional coverage limits, which usually begin at one million dollars and increase incrementally. Consider the following when shopping for umbrella insurance –  

Your Exposure to Risk

Do you have an asset or property that creates a larger liability risk? Is the property an investment? Does it have a pool? Is the insured a business owner?

Potential Legal Expenses

Umbrella insurance provides coverage for expenses/damages related to litigation and other legal matters should the insured be found to be legally responsible.

Reach Out To Us

One’s need for umbrella insurance varies based on your personal situation and objectives. For more information, North Carolina residents should contact Oak Ridge Insurance Services, a leading Oak Ridge, NC insurance company today.

Types of Perils Umbrella Insurance Commonly Won’t Cover

Just as it’s important to know what is covered under your various insurances, it is equally as vital to understand what won’t be covered. Umbrella insurance policies can attach to just about any type of indemnification that you have already purchased. 

Umbrella Insurance Exclusions

Generally speaking, your umbrella insurance will not pay for situations that are related to crimes committed or fraud. When relating to business ventures, you may encounter situations where you have been the victim of libel or slander, and it can extend to the court costs involved in fighting these actions, but not if you have been the perpetrator. 

Umbrella insurance also will not usually cover your own injuries in the event of an accident, but when attached to your liability indemnification, will be applied to pay the medical expenses and lost wages of the other driver. In addition, it will not cover repairs to your vehicle but only that of the person you hit. 

You may encounter problems associated with contracts that can cost your business money, but these are typically outside the purview of umbrella insurance. Your Oak Ridge Insurance Services agent can be of assistance when detailing the complete list of covered perils and those that are not included. Additionally, umbrella insurance is not a requirement by law for those living in the Oak Ridge, NC region but is entirely voluntary. 

Umbrella insurance may not be available for every type of watercraft, and there will generally be exclusions based on the size and category of the vessel. 

Oak Ridge Insurance Services Is Here To Help

We are pleased to offer insurance products and services to our clients living in and around the Oak Ridge, NC area. We invite you to stop in to discuss your situation further or to reach us online or by telephone. 

Do I Need Umbrella Insurance?

Umbrella insurance can help protect your home or company if your insurance plan has a major claim or goes out of business. Umbrella plans are different from other types of coverage because they are governed by a contract. 

Umbrella plans are often expensive, costing 10% to 20% more than other types of coverage. Due to this, it’s important to compare them to other options and consider their cost before purchasing one. For inquiries in Oak Ridge, NC and the surrounding areas, call Oak Ridge Insurance Services. 

Umbrella Insurance: What You Need to Know 

The unfortunate fact is that a variety of natural disasters can happen at any time, and they may not be predictable. No matter when a disaster strikes, it’s important to be prepared. 

Many homeowners purchase Homeowner’s Insurance to protect their property against perils like fire, storms, and earthquakes. But what about other disasters like floods, ice storms, or solar flares? What if you’re not sure when these types of disasters will strike, and you want to be prepared? 

Umbrella insurance is designed to protect you from financial risk if your primary insurance policy does not cover a certain risk. Unfortunately, you can be struck by a car and end up in the hospital. 

You’re investing in your future, and with that comes the responsibility of protecting that investment. That’s why you may consider protecting your home or business with an umbrella insurance policy. 

Umbrella insurance is typically more expensive than basic home insurance, but it’s a valuable policy you can’t live without. 

Contact Us Today

There are many different types of insurance that you can buy, and many people think that you don’t need any of them. This couldn’t be further from the truth! 

Even though it’s a common misconception, you do need to have some form of insurance. Umbrella insurance is one of the most common types of insurance, and it’s a great place to start. For expert help, consult Oak Ridge Insurance Services, a company serving in Oak Ridge, NC.

Who needs umbrella insurance in North Carolina?

If you are in the Oak Ridge, NC area, spending time to consider your insurance needs is a good idea. A form of coverage that many people will benefit from having is umbrella insurance coverage. This is a form of liability insurance that will provide coverage for a wide range of risks, which offers some valuable protection and support to policyholders in the area. There are a few reasons people here will want to have this protection. 

Coverage Protects Against Major Claims

A reason to have an umbrella insurance plan is that the coverage will give protection against major claims. Most people are going to have personal liability coverage included with their auto or home insurance plans. However, there is always a chance damage in an accident can exceed these levels. Fortunately, if you do have appropriate coverage, you will have protection against these claims. 

Coverage Offers Support for Wider Mix of Risks

You should also get an umbrella insurance plan to get support for a wider mix of risks. With an umbrella coverage plan, your liability support will include many risks that are not included under other standard insurance plans. This can help ensure you remain properly insured and prepared for situations and risks that are otherwise unexpected. 

Having an umbrella insurance plan in place can benefit many people in the Oak Ridge, NC area. If you would like to get a new plan in this area, calling Oak Ridge Insurance Services can be very helpful. As you are looking for umbrella coverage, you can quickly find out that there are a lot of choices to make. The team with Oak Ridge Insurance Services can help you assess your situation and give the support needed to choose a plan that meets your needs.

Who should have umbrella insurance

Umbrella insurance is one of the most misunderstood types of insurance. Many people have no idea what it is and what it does. In simple terms, it is a policy that extends the liability coverage that you already have on another policy. The visual of an umbrella is actually perfect, umbrellas protect you from rain and storms, and umbrella insurance protects your assets from the storms of life. Having a trusted independent insurance agent allows you to get a discussion started with them about how you could benefit from this important and affordable coverage. At Oak Ridge Insurance Services in Oak Ridge, NC, we are that agent. 

You don’t have to be a homeowner to benefit from umbrella insurance. Liability coverage is something you have on other policies, such as auto and renters insurance. Liability coverage protects you from extraordinary events that can be life-changing. If you are involved in an incident or accident that results in legal action, it can put your assets at risk. As an example, the average jury award in a car accident case is $300,000. If your liability coverage is $100,000, you are going to be $200,000 short. 

If you have an umbrella insurance policy, it will be from one to ten million dollars in additional liability coverage. The $200,000 will be picked up by your policy and the legal bills that came with that court case. Without it, you will have to tap your savings, or if you don’t have savings, your future wages can be attached. Lots of things other than a car accident can result in a judgment against you. An umbrella insurance policy has great value and benefits to anyone who has an insurance policy with liability. 

To discuss this coverage’s benefits, call or visit Oak Ridge Insurance Services in Oak Ridge, NC. You will be happily surprised at how affordable and easy to understand umbrella insurance is. 

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