Why You Need Umbrella Insurance in Lafayette, IN
If you are found legally responsible when someone gets hurt or has damaged property, you could owe a lot of money that may exceed the amount of coverage your general insurance plan pays. Umbrella insurance in Lafayette, IN protects you from liability costs over and above your underlying coverage. Your insurance policies have maximum liability limits that state the most the insurance company will pay if someone files a claim against you. For people with a lot of assets at risk, it can be important to make sure you have additional coverage. These assets can include your home equity, savings and investments, and even potential future income.
Umbrella coverage protects what you’ve worked hard to earn. Extra insurance on your assets and future income can grant you the peace of mind you need if the unexpected happens.
Deciding if you need an umbrella insurance policy and how much coverage is enough for you can be overwhelming. Our team is happy to help you learn more about what umbrella coverage includes, determine what assets you have at risk, and help you decide how much insurance coverage you need. We can create an insurance plan to protect you and your family’s future.
Our Lafayette, IN Umbrella Insurance FAQ
A: Umbrella insurance covers liability, not tangible physical property. Umbrella insurance does not cover your vehicle and home, but your assets are protected. Your liability risk is simply the money you owe if someone files a claim against you and you are found responsible – or liable. Umbrella insurance protects your assets and assures you are not paying out of pocket for liability costs that exceed your regular coverage.
Q: How do I know how much coverage I need?
A: The correct amount of coverage for you cannot be decided with an exact formula. It depends on your risk tolerance and your unique situation. We work one on one with our clients to develop an individualized plan with the best option for you.
Q: What should I think about when choosing the amount of coverage I need?
A: There are three primary things to consider – net worth, current income, and expected future income. The bottom line is that you may need more insurance coverage if you have savings and investments, own your home, or if you have more income and expected income at risk.
Are you a high net worth individual?
Umbrella insurance protects your assets. If you have more, you also have more to lose. This is where your net worth comes into play. Your net worth is what you have minus what you owe. If you have more, or the potential to earn more in the future, you may need an umbrella. Some key life changes to be aware of when considering an umbrella: paying off your home, if you own multiple properties or land, getting a promotion or new job, and as you build your retirement nest egg. These are just some occurrences that may trigger the need for an umbrella policy.
How exposed to risk are you?
We are not referring to your bungee jumping hobby or if you are a professional stunt man. But if your day to day life exposes you to more than normal risks, it might be a good idea to consider an umbrella. Do you drive a lot or have a long commute to work or school? Do you have teenage drivers in your household? Do you host dinner parties, or is your house where all the neighborhood kids spend time? Do you have a pool or trampoline? Do you have a vacation home? If yes is the answer to any of these questions, and you have assets worth protecting, an umbrella policy could be the solution.
How much does Umbrella Insurance cost?
You may think millions of dollars in insurance coverage has to be expensive, right? Wrong! An Umbrella policy, for many, is surprisingly inexpensive. There are many factors to consider, but a policy typically costs around $200 to $600 a year. Contact Farmers Insurance – Jenna Isch to find out if an umbrella policy is right for you.
Why Farmers® Insurance?
When you need insurance coverage, you want to work with someone you know you can trust. Jenna Isch is the local Lafayette, IN insurance agent you can rely on to give you an honest evaluation of the coverage you need. The team at Farmers® Insurance – Jenna Isch is dedicated to providing personalized plans for your home insurance, auto insurance, life insurance, and more.