Everyone wants to save money. So why worry about umbrella insurance? Shouldn’t a home and auto policy leave you adequately covered?
Unfortunately, we live in a world of lawsuits. Large damages can be awarded, which can be extremely expensive and have a long-term financial impact. You can be sued for anything, even your furry friends.
Herschel’s Story
Take Herschel for instance. Herschel is a timid but much-loved labradoodle who enjoys taking naps on the driveway while his owner mows the lawn.
Herschel watched from eight feet away as his neighbor, a 39-year-old man, showed off his rollerblading skills to his kids. The man wiped out on the sidewalk in front of Herschel’s house and broke his leg. He required surgery, costing around $35,000 in medical costs and $18,000 in lost wages.
Fair or not, the man brought a lawsuit against Herschel’s owner, suing for $220,000 in damages. He alleged that Herschel had caused the accident by getting in his way, despite multiple witnesses to the contrary.
But Herschel’s owner was lucky–a jury vindicated Herschel. However, lawsuits such as these can easily exceed the limits on a homeowner’s policy, leaving the insured responsible for the remainder. An umbrella policy would prevent that, giving you an extra $1 million to $5 million in coverage.
Your pets can put your assets at risk in other ways as well. According to the Center for Disease Control and Prevention, 4.7 million people are bitten by dogs each year, with half of those occurring on the owner’s property. According to the Insurance Information Institute, dog bites account for a third of all homeowner’s insurance claims, which only cover limited damages.
Many people are surprised at the relatively low cost of umbrella insurance. The coverage is sold in increments of $1 million, up to $10 million
The first $1 million usually costs $300 per year or less, and additional $1 million increments can be as low as $100 per year. Because of its relatively low cost, umbrella insurance is considered to be one of the best insurance values.
As with most insurance, your personal risk profile will impact your cost. Factors like your hobbies, your job, the type and number of pets you own will affect the price you pay.
Protect what matters. Get a quote today for Houston umbrella insurance. You can also call us to speak directly with one of our agents!