Loudoun Insurance and South Riding Insurance, Northern Virginia Zip 201*-221*, Near 20152

Personal Umbrella Policies

When It Rains, It Pours: Why You Need a Personal Umbrella Policy

In recent years, our society has become what some people call "lawsuit happy." In other words, an increasing number of people are filing lawsuits for everything from emotional injury to property damage-and they're suing for larger amounts than ever before. If someone were to file a lawsuit against you, you could end up losing hundreds of thousands of dollars or more, even if you won.

While you may have some personal liability coverage through your homeowner's or auto insurance policy, it's probably not nearly enough to cover a major lawsuit. Fortunately, you can further protect yourself with what's known as an umbrella policy. This type of policy offers a higher level of liability coverage and ensures that you and your family will be protected if someone sues you for damages.

Read on to learn more about these valuable policies:

Umbrella policies: A liability coverage "extension"

When it comes to lawsuits, the more assets you own, the more you stand to lose. A personal umbrella liability policy can protect you from these potentially devastating losses. These policies act as an extension to the current liability protection you probably have through your homeowner's or auto insurance policy.

Umbrella policies are typically sold in million dollar increments, and you can obtain a policy once your home and auto insurance policies meet a minimum "attachment point"-typically a liability limit of $250,000 or $500,000. Here in Loudoun County, Virginia, Agent Khalid Umerani often sells Umbrella policy limits of $2 million & $3 million.

What does it cover?

Most umbrella policies covers the following:

Personal injury, including false arrest, mental anguish, malicious prosecution, libel, slander, defamation of character, wrongful entry or eviction, negligent infliction of emotional distress or invasion of privacy.
Bodily injury, such as physical injury or death. In some jurisdictions, this also includes emotional injury.
Property damage, including destruction of the property of others, cost of recreation and loss of use. However, it does not cover damages done to your own property.
Defense coverage, including groundless, false and fraudulent suits, bail bond costs, loss of earning and other "reasonable" expenses.
Of course, it's probably easier to understand exactly what an umbrella policy covers by putting it into real-life terms. Here are a few examples of what this type of policy could cover:

A deliveryman is hauling your new washing machine into your home when he trips on your door mat, falls and breaks his neck. Your umbrella policy would likely cover the hundreds of thousands of dollars worth of damages.
You're driving down the road when an important corporate CEO steps into the crosswalk in front of your car. He sues you for millions of dollars in medical costs, lost earning and damages. Your umbrella policy can cover you for these damages.
Your daughter invites a friend over to play on her swing set. Her friend falls off the slide and suffers from serious injuries. When her parents sue you, your umbrella policy will cover the medical costs.
How much does is it cost?

The price of an umbrella policy depends on how much coverage you want, the number of properties you rent or own and the number of automobiles or watercraft you own. The cost associated with cars and watercraft are much higher than those associated with properties.

Let's say you are single, you own one home and one car, and you want to purchase a $5 million umbrella policy. You'll probably pay somewhere between $270 and $550 a year. On the other hand, if you are married with two children, you own two homes, a rental property and three cars, and you want a $10 million umbrella, you'll probably pay a good deal more-anywhere between $970 or $1,750 a year.

Call us here at NOVA Insurance Group, South Riding, VA (Loudoun County) to discuss whether or not an umbrella policy is right for you. In the long run, by paying a few hundred dollars per year, you could save millions. We can also be reached via our two websites:
www.south-riding-insurance.com
www.loudoun-insurance.com

Labels: Personal Liability Insurance Fairfax / Loudoun Counties, Personal Umbrella Policy in South Riding / Chantilly, South Riding Insurance

posted by Khalid Umerani @ 11:39 AM
NOVA Insurance (20152) Group - Loudoun Insurance

Protect Your Assets with an Umbrella Policy

Hopefully, you will never be served with legal papers and involved in a costly lawsuit. But in the event you are, it will be imperative that you have the insurance to cover your legal liability. That's where a personal liability umbrella policy can help especially in Fairfax / Loudoun Counties in Virginia.

Umbrella policies supplement the liability coverage you have through home and auto insurance and provide an extra layer of security by protecting your assets that might be at risk in a liability lawsuit.

If you don't have enough liability coverage from your homeowner's and auto policies to adequately resolve a claim, the person suing you can go after your home and your other assets to pay for damages. Umbrella policies cover damage claims that you, your dependents, or even your pets may cause in the South Riding / Chantilly areas.

Umbrella policies kick in after, and pay in addition to, your auto and homeowner's insurance liability limits. The bulk of the risk is assumed under the primary auto or home policy, which enables insurers to offer umbrella policies at very reasonable costs.

However, most insurance companies will not sell an umbrella policy unless both your auto and homeowner's insurance is with them. In addition, your insurer may stipulate that your auto or homeowner's liability limits be at least a certain amount, such as $200,000 to $300,000.

Umbrella policies provide much broader coverage in case you are sued, covering you if you cause bodily injury, property damage, or personal injury. Certain umbrella policies also cover you if you face liability arising from your service on the board of a civic, charitable, or religious organization.

Umbrella policies typically do not cover claims from business endeavors. If you own a business, even a small one, you'll need to purchase business insurance to protect yourself from business-related liability claims.

To determine if you need an umbrella policy, analyze your risk of being sued and the assets you have at risk by contacting Khalid Umerani, NOVA Insurance Group, here in Chantilly / South Riding Va. Do you have a swimming pool or trampoline that may pose a threat to visitors? Of course, you may decide your personal situation makes lawsuits very unlikely.

Before making any decision, compare the umbrella premium with the cost of raising the liability limits on your auto and homeowner's policies. It may work to your advantage to raise these current limits by several hundred thousand dollars, and you may come out spending less than you would on umbrella policy premiums. Please contact Khalid Umerani, NOVA Insurance Group, South Riding, VA.

www.south-riding-insurance.com
www.loudoun-insurance.com

Labels: Asset Protection in Fairfax / Loudoun, Fairfax Home Insurance, loudoun auto insurance, Personal Liability Insurance Fairfax / Loudoun Counties, Personal Umbrella Policy in South Riding / Chantilly

posted by Khalid Umerani @ 3:20 PM
NOVA Insurance (20152) Group - Loudoun Insurance