Your homeowners and auto insurance have policy limits on how much they'll pay on covered liability.  Beyond your coverage limits, you're personally on the hook for any judgment above those limits.  That's what umbrella insurance is for.  It isn't only for people with assets into the seven figure range.  Even the little guy with a mortgage, wife, kids and a steady job needs umbrella coverage.


It only takes a single short distraction while driving to be responsible for a really bad accident, and then you get sued.  There are very serious permanent injuries, and you're only insured for $300,000.  A jury comes back with an award of $1 million, and your insurer is only going to cover that first $300,000.  It's perfectly legal for the injured person to ask a court not only to order you to turn over every asset that you have, but also to garnish your earnings in the future.   Just about any judge is going to do that too.  It's the law.


Umbrella insurance provides an extra plateau of protection.  It operates to protect you for liability over and above the policy limits of your primary auto or homeowners insurance on covered losses.  It's triggered when your liability policy limits have been exhausted.  Most people who have umbrella insurance carry an extra $1 million, but umbrella coverage is so inexpensive that it's not unusual to see people carry an extra $5 million.  Most umbrella policies even cover lawsuits involving defamation, invasion of privacy or false arrest.


Umbrella coverage is surprisingly affordable.  Depending on your claims history and other factors, the first $1 million is about $250 per year.  Every $1 million of coverage beyond that amount is about an extra $100 per year.   If you think those numbers aren't affordable, you might want to raise your auto and homeowners deductibles to $1,000.  The money you save on decreased premiums helps pay for that first $1 million of umbrella insurance.


Everybody in your family depends on you every day.  The small premium you'll be paying for umbrella coverage brings you comfort along with protection and security for your family.  Here at Value Plus Insurance, we service the entire Twin Cities area.  If you have questions about umbrella insurance or would like to learn more about it, contact one of our Value Plus agents at 952-435-0550.  We deliver better rates and personalized service.