Umbrella Insurance in Florida - How Much is it?
Florida umbrella insurance is personal liability insurance that is vital to have if you are involved in a claim larger than your homeowners’ insurance or auto insurance policy limits. Florida umbrella insurance also covers the rest of the damage that is not covered by your watercraft liability insurance.
Umbrella insurance covers certain losses that your other policies may not cover, such as libel, slander, and false imprisonment. Being an owner of a rental property, you also need umbrella insurance to protect you from any losses that your renter’s policy insurance does not cover.
Do You Need Umbrella Insurance in Florida
There is certainly a fear factor involving the decision-making of purchasing umbrella insurance in Florida. Many insurance companies buy umbrella insurance policies to make sure that they will not get themselves into trouble due to lawsuits or claims that anyone could file and leave them financially ruined. You may have heard various personal liability horror stories in the news, wherein victims receive multimillion-dollar judgments that companies or businesses had to pay. How likely are you to get into such a situation?
It has been a general rule that you have to purchase Florida umbrella insurance policies if your assets’ total value, including your savings and checking accounts, your college savings, investment accounts, retirement, and home equity, are higher than the liability limits of your auto or homeowner’s liability. This idea of umbrella policy insurance and policy limit is for you to have enough insurance coverage to ensure your assets’ protection and prevent losing them from a lawsuit.
Some jury awards can exceed insurance policy liability limits, so the real question should be, are you at a high risk of getting sued? Hence, umbrella insurance is important to have, and you are paying a small price for extra peace of mind. While more people likely need a personal umbrella insurance policy than others, you are also a better candidate if you are exposed to a bigger risk of acquiring an excess liability. A personal liability policy’s risk factors include owning property, renting it out, having a trampoline or hot tub, employing household staff, organizing large parties, and a famous public figure.
Another reason you could be at risk is to have a teenage driver in the family, the same way as having a dog or owning a house with a swimming pool. It is because it exposes you to a higher risk of getting sued, and the more you should purchase personal umbrella insurance. However, if you have Florida umbrella insurance, you can sleep better knowing that you are protected.
Is it Worth Having a Florida Umbrella Policy
Although having a Florida umbrella insurance policy is not required, it is best to purchase one, most especially if you have properties to protect that you may lose from lawsuits or claims. A Florida umbrella insurance policy provides additional liability protection for your property. Umbrella liability policy acts as an excess liability insurance coverage that provides protection over auto insurance, homeowners insurance liability policy, and personal assets that you have insured. Make sure to understand your coverage and policy limits by getting in touch with an insurance agency.
Driver with Many Assets
If you are a driver with many properties to protect in Florida, you are susceptible to lose a lot if you get into an accident where other drivers and passengers may sue you in court for the damages if you are at fault.
Your Florida umbrella policies will pay for the costs up to your liability limits. It is the best considerable option if you have more than $100,000 assets. In case you do not have that many assets now, it might change in the future, and the court may take it into account. Discuss this circumstance with your insurance agency.
How Much Does Umbrella Insurance Cost in Florida
The cost of an Florida umbrella insurance policy depends on how much coverage you purchased, the state you live in, and the risks you face. You may expect a higher cost if you own more homes or cars and have a large number of household members that your umbrella policy provides protection on.
Umbrella insurance policy is quite cheaper than other types of insurance, especially considering the range of its coverage. Most insurance companies offer umbrella liability policies at a starting cost of $1 million in coverage, with higher liability limits offered. It typically ranges from $1,000,000 to $20,000,000 of additional liability protection.
Umbrella insurance is considered cheap because you already have homeowners and auto policy. Policyholders have to carry the maximum liability coverage under homeowners insurance and auto policies before purchasing an umbrella policy. Request a quote from several insurance agents.
What Does Umbrella Insurance Cover
The great idea concerning umbrella insurance policy is it provides wide coverage. Insurance umbrella policy covers any accident that your other current policies do not offer, as they mostly cover specifically named incidents. Also, umbrella policy covers malicious prosecution, wrongful accusation, invasion of privacy, and other dangers. Also, umbrella insurance policy does not only cover the policyholder but as well as the other members of their household. So if your teenager is not the best driver, you will feel at ease after knowing that your umbrella insurance policy will cover the injured parties for their medical bills due to injuries, provided that your kid is liable for the accident.
But there is no insurance policy that covers everything. The following are some incidents or injuries that an umbrella policy does not cover.
- Damage to your own property. Since it is a liability coverage, it will only cover if you are held liable for the property damage of someone else’s. Having an adequate home insurance policy for the protection of your property.
- Damage that you or a covered household member intentionally caused.
- Liability incurred in business or professional services. To cover these incidents, you will need business liability insurance.
- The liability you agreed to take responsibility for under your signed contract.
- Liability related to war or armed fights.
The Bottom Line
Even the most careful person can end up with the hook for a judgment from a personal liability lawsuit. Although you are unlikely to find yourself in this situation, it is still wise to protect yourself against financial loss by getting an umbrella insurance policy from your reliable insurance company that offers umbrella insurance. You are fully covered with enough liability insurance except for homes and cars that you own under other state laws.
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