Umbrella Insurance Policies: A Good Thing To Have

Umbrella Insurance Policies: A Good Thing To Have

Imagine that you have been diligent (or so you thought) and have purchased a $250,000 liability limit car insurance policy.  But, you later cause a bad accident Ohio traffic accident and the jury awards the plaintiff $1 million in damages.  Your car insurance pays out the policy limits of $250,000.  You are personally on the hook for the other $750,000.  Now what?  Well, you will be wishing you had an umbrella insurance policy, because at this point bankruptcy and losing your personal assets may be the only option.

Umbrella policies serve as an “extra level” of coverage and can cover a range of various other insurance policies such as homeowners insurance and car insurance, including coverage for both liability and UM/UIM.  Umbrella policies kick in to protect your assets in the event that your other liability policies get maxed out.  They are typically sold in $1 million denominations and can be inexpensive.

An umbrella policy essentially provides a broader insurance coverage range with higher liability limits—in other words, if you get sued for more than what your primary limits allow, your umbrella policy will kick in and cover the extra expenses.  Primary policies generally cover bodily injury and property damage, but an umbrella can include these things plus much more.

A typical umbrella policy does not have a deductible and will kick in immediately once your other insurance policies are exhausted.  For example, let’s say that you have a $500,000 auto liability policy and a $2 million umbrella policy.  Let’s also say that you cause an accident, injure a family, and have a $2.5 million judgment rendered against you.

In this scenario, the first thing that will happen is that your auto insurance company will pay out the $500,000 liability limits.  After your auto insurer makes this payment, your umbrella carrier will kick in and cover the remaining $2 million.  As you can see, having this umbrella policy in place may have just prevented you from having to declare bankruptcy.

For this reason and many others, it is an excellent idea to buy both a liability umbrella and a UM/UIM umbrella policy.  You can oftentimes add a $1 million umbrella on top of a $250,000 liability policy for less than $50 per vehicle per year.  Talk with a reputable insurance agent to see just how affordable an umbrella policy can be.

Here at the Charles E. Boyk Law Offices, LLC, our Ohio lawyers offer FREE insurance coverage evaluations.  Just give us a call or schedule an in-person appointment and one of our attorneys will review your current insurance with you and make recommendations about changes that you may want to consider.

Take it from the experienced Ohio car accident lawyers at the Charles Boyk Law Offices: this is about the time that a driver seriously regrets not investing in an umbrella insurance policy, as bankruptcy and the loss of personal assets becomes a very real possibilty.

Insurance agent Mike Carroll visited our office to disscuss some important issues. Click below to see Mike and Chuck’s advice on Umbrella Polices.

Explaining Umbrella Policies In Ohio Auto Insurance

Imagine that you are the at-fault driver in a bad accident and the jury awards the plaintiff $1 million for their injuries and other damages. After your insurance company pays out the policy limits of $300,000, the at-fault motorist is then responsible for the remaining $700,000. Now what? Take it from the experienced Ohio car accident lawyers at the Charles Boyk Law Offices: this is about the time that a driver seriously regrets not investing in an umbrella insurance policy, as bankruptcy and the loss of personal assets becomes a very real possibility.

In Ohio auto insurance, umbrella policies serve as an “extra level” of coverage and can cover a range of various other insurance policies such as homeowners insurance and car insurance, including coverage for both liability and UM/UIM. These types of insurance policies work to protect your assets in the event that your other liability policies get maxed out and are typically sold in $1 million denominations. Yet when looking at the big picture, umbrella policies are relatively inexpensive.

An umbrella policy essentially provides a broader insurance coverage range with higher liability limits—in other words, if you get sued for more than what your primary limits allow, your umbrella policy will kick in and cover the extra expenses.  Primary policies generally cover bodily injury and property damage, but an umbrella can also include personal injury, property damage, or bodily injury caused by you, your pets (as in a dog bite case), or other people on your policy.

Generally, an umbrella does not have a deductible and will kick in immediately once your other auto insurance limits are exhausted.  For example, let’s say that you have a $500,000 auto liability policy and a $2 million umbrella policy.  Let’s also say that you cause an accident, injure a family, and have a $2.5 million judgment rendered against you.  In this scenario, the first thing that will happen is that your auto insurance company will pay out the $500,000 liability limits.  After your auto insurer makes this payment, your umbrella carrier will kick in and cover the remaining $2 million.  As you can see, having this umbrella policy in place may have just prevented you from having to declare bankruptcy.  For this reason and many others, it is an excellent idea to buy both a liability umbrella and a UM/UIM umbrella policy.  You can oftentimes add a $1 million umbrella on top of a $300,000 liability policy for as little as $40 per vehicle per year.  Talk with a reputable insurance agent to see just how affordable an umbrella policy can be.

After seeing the horrible tragedies that result from inadequate insurance coverage, Toledo injury attorney Charles Boyk has large limits to protect himself and his family.  “I carry a $500,000 underlying liability/un/underinsured motorist policy with a $2 million umbrella, with both liability and un/underinsured motorist coverage,” Boyk stated.  “This $2.5 million in liability/un/underinsured coverage is crucial to protect my family.”

Charles E. Boyk Law Offices, LLC