Umbrella Insurance

Northern Illinois Umbrella Insurance

An Umbrella Can Protect You from More Than UV’s and the Rain

If an unfortunate accident should happen that is your fault, do you have enough liability insurance from your current policies to cover your costs for negligence? Just one settlement from an injury or accidental death for which your are deemed liable could cost millions of dollars and wipe out your savings.

An umbrella policy protects your existing and future personal assets against the cost of losing a lawsuit over a car accident or an accident on your property. Protect yourself and your assets with umbrella coverage. Contact us at 847.853.5300.

Understanding Your Umbrella Insurance Policy

Why liability coverage from your homeowners and auto policy may not be enough?
Consider what would happen if there were a settlement (or judgment, if it goes to court) of $900,000 as a result of an accident for which you were liable. Let’s say you have insurance with a limit of $300,000 of medical expenses per accident. What would happen? Your auto insurance would pay $300,000 of the damages and you would be liable for the remaining $600,000. Do you have the personal financial assets to pay-off a $600,000 settlement?  If you had a $1 million umbrella policy your umbrella would pay the $600,000. It’s an inexpensive way to protect your finances from devastating lawsuits.

What’s covered by an Umbrella Policy?
A typical umbrella liability policy provides the following protection, up to the coverage limits specified in the policy:

  • Personal injury or property damage caused by you, members of your family, or hazards on your property for which you are legally liable. This includes what are called “attractive nuisances” such as swimming pools and trampolines.
  • Personal liability coverage for incidents that occur on or off your property. For example, if your dog bites a neighbor.
  • An additional layer of protection for your vehicles, beyond your auto insurance.
  • Protection against slander, libel, wrongful eviction, or false arrest.
  • Legal defense costs for a covered loss, including lawyers’ fees and associated court costs.

What is not covered?
Exclusions vary from one insurer to another and from one policy to another, but the following are some items typically excluded from coverage:

  • Damages expected or intended by you or a member of your family or household.
  • Liability arising from certain exotic vehicles, such as aircraft and jet skis (snowmobiles and golf carts usually are covered).
  • Damages to your own property. Depending on how these were caused, your standard homeowner policy may cover these.

Who needs umbrella insurance?
It used to be that only the very wealthy. However, you don’t have to be wealthy to need an umbrella policy. Just because you aren’t at high risk of being sued doesn’t mean you are not at risk. We encourage property owners with greater risk exposures and those with more assets to consider obtaining an umbrella policy.

Fort Dearborn Insurance can help you decide whether an umbrella policy makes sense for your lifestyle and financial needs. Contact us at 847.853.5300 for information about Northern Illinois Umbrella Insurance.