How Much Does Umbrella Insurance Cost? Florida
Umbrella insurance is one of the best insurance investments you can make to safeguard your hard-earned money. But what is the price?
We’ll break down how much umbrella insurance will cost you so you can make an informed decision and cross this item off your to-do list.
What Is Umbrella Insurance?
Umbrella insurance functions similarly to. well, an umbrella for your money. It safeguards it against unforeseen lawsuits or large claims that exceed the limits of your standard homeowners or auto insurance policies. All it takes is one high-priced lawsuit to devastate your finances. (You don’t even need to be at fault.) People nowadays sue for a variety of reasons.)
When you reach the liability limit of your homeowners or auto policies, umbrella insurance kicks in. It will give you peace of mind knowing that your savings and lifestyle are safe from the elements (meaning, all the bad things that could happen).
What Does Umbrella Insurance Cost?
Umbrella insurance is actually quite cheap. A $1 million umbrella policy costs only about $150-300 per year. 1 You can increase your coverage to $2 million for an additional $75 per year. In fact, adding $1 million in coverage will only cost you an extra $50 per year on average. 2 That’s so cheap, you might pay more for an umbrella!
You’ve worked hard to get to this point. However, don’t expose yourself.
Also, keep in mind that most insurers will not allow you to purchase a separate umbrella insurance policy. Umbrella insurance must be added to an existing policy.
You must have a certain amount of liability in your other policies before you can purchase umbrella insurance. Most insurance companies require you to have $250,000 in auto liability insurance and $300,000 in homeowners insurance. As a result, you may end up paying more for auto or home insurance.
What Factors Determine the Cost of Umbrella Insurance?
The cost of umbrella insurance is determined by a number of factors. What you pay will be determined by factors such as where you live and the number of homes, vehicles, or boats you need to insure.
You’ll also have to pay more if you require more coverage. Umbrella insurance, however, is a great buy regardless of price.
What Does Umbrella Insurance Cover?
Here’s a quick rundown of the five major areas that umbrella insurance covers:
- Dog bites and car accidents are examples of bodily injury.
- Basically, anything for which you are found liable that causes harm to others (like if the neighbor kid breaks their foot on your trampoline).
- Property damages are covered if, for example, you are at fault in a bad car accident and are obligated to pay the other person’s high repair costs.
- So, if you caused a 10-car pileup on an icy interstate and people are filing claims for their damaged vehicles left and right, umbrella insurance has you covered.
- Legal fees can quickly add up.
- If you are sued, umbrella insurance protects you from having to pay a lot of money for lawyers. (Let the insurance company line the pockets of the lawyers so you can keep your money in your pocket.)
- Slander and libel are also covered if you’re sued for causing harm to someone’s reputation—even if it’s through something as simple as an online restaurant review.
- If you are a landlord, your rental property is also protected.
How Much Umbrella Insurance Do I Need?
You may be wondering, “How much umbrella insurance do I need?” That’s a good question.
Umbrella insurance coverage begins at $1 million and increases in $1 million increments. While $1 million may appear to be a large sum, it can quickly be depleted during a costly lawsuit.
If you own property, drive a luxury car, have a swimming pool, serve on a board or nonprofit, or are well-known for your success and wealth, you may want to consider investing more than $1 million. Most insurance companies will provide up to $5 million, if not $10 million.
Whatever you choose, make certain that it covers your entire net worth.