The ABCs of Umbrella Insurance: A Comprehensive Guide

Most people have some form of insurance- whether it’s auto, homeowners, or even health insurance. But there’s one type of insurance that often gets overlooked: umbrella insurance. Umbrella insurance is designed to provide an extra layer of protection in the event that you are sued or held liable for damages. It can help to cover costs such as legal fees, medical bills, and even lost wages. And while umbrella insurance is not required by law, it is a wise investment for anyone with significant assets or income.

So, what exactly is umbrella insurance? How does it work? And how much coverage do you need? Ransom & Associates Insurance Agency in Winder, GA offers the following comprehensive guide.

The ABCs of Umbrella Insurance

How Does Umbrella Insurance Work?

Umbrella insurance kicks in when the limits of your other liability policies have been reached. For example, let’s say you have a $500,000 auto insurance policy and you’re involved in an accident that causes $600,000 in damages. Your auto insurance will pay out the first $500,000, and your umbrella policy will cover the remaining $100,000.

How Much Umbrella Insurance Do You Need?

Umbrella insurance is important for anyone with assets to protect. But how much umbrella insurance do you need? The answer depends on several factors, including the value of your assets, the likelihood of being sued, and your tolerance for risk.

Here are a few things to consider when determining how much umbrella insurance to purchase:

  • The value of your assets: Obviously, the more assets you have, the more umbrella insurance you will need. But even if your assets are modest, you could still be sued for a large amount of money. So, it’s important to consider not just the value of your assets but also the likelihood of being sued.
  • The likelihood of being sued: If you are more likely to be sued, you will need more umbrella insurance. Factors that can increase your likelihood of being sued include being a high-profile individual, having a lot of wealth, or being in a high-risk profession.
  • Your tolerance for risk: Finally, you need to consider your own tolerance for risk. If you are the type of person who is comfortable with a little bit of risk, you may not need as much umbrella insurance. But if you are risk-averse, you will want to purchase more coverage.

No one can tell you exactly how much umbrella insurance you need. But by considering these factors, you can make an informed decision about how much coverage to purchase.

Get Umbrella Insurance in Winder, GA

As you can see, umbrella insurance is a wise investment for anyone with significant assets or income. So if you’re looking for an extra layer of protection, Ransom & Associates Insurance Agency can help. We offer umbrella insurance policies. Contact us today to get started.


How to Know You Need Umbrella Insurance in Georgia

The answer on umbrella insurance is never an easy one. If you have a lot of assets, business, and want financial security, it makes sense to get umbrella insurance. Umbrella insurance is the insurance that you get to cover you in the event that claims for standard damages exceed your caps, or if problems outside of standard coverages arise. 

At Ransom & Associates Insurance Agency, we want Winder, GA residents to be covered for every potential problem they could have. We can help you to determine what umbrella insurance covers, and if it is the right choice for you.

Bodily Injury Liability

Bodily injury liability coverage is often covered under other policies you may already have, such as auto insurance, home insurance, or commercial insurance. This coverage in an umbrella policy will cover you in the event that those caps are exceeded during a claim.

Here you will have coverage for the costs a third party will incur in the event of an injury that you are found liable for.

Property Damage Liability

Property damage liability will cover you in the event that there is damage to a vehicle or property as a result of an accident you are at-fault in. This could be damage to someone else’s property, such as their vehicle during a car accident. Even damage to their car while parked at your home could be covered here.

Other Liabilities

There are a number of other liabilities you may need coverage for. Umbrella coverage is for those moments in life when it feels like it is raining problems.

You can use umbrella insurance if you sue or are sued for slander, libel, malicious prosecution, false arrest or detention, or mental anguish or shock.

Get a Quote

There are a number of liabilities that happen in life that you often can’t prevent. At Ransom & Associates Insurance Agency, we want Winder, GA residents to be covered for every possible scenario. Call us today for a quote on umbrella insurance.