“Umbrella Insurance.”
You’ve probably heard the term before. You might even have a vague notion of what it means from the name alone – some kind of comprehensive coverage, right?
Umbrella insurance, in reality, is both as simple as that explanation as it is far more complicated. But with the right guidance, building the right Illinois umbrella insurance package doesn’t need to cause a headache. Let’s take a look at some of the most common questions.
What is umbrella insurance?
Umbrella insurance refers to coverage that extends beyond the defined coverage you receive with an existing policy. This is often added on to policies like auto or homeowners insurance.
What does Illinois umbrella insurance cover?
A: How your umbrella insurance policy is structured will ultimately determine what is covered. Generally speaking, this can include bodily injury and property damage. It can also include personal injury claims related to charges like defamation, slander, and libel. Depending on the policy, it could also cover legal fees associated with covered claims.
Who should consider getting umbrella insurance?
If you have reason to be wary of potentially expensive lawsuits, Illinois umbrella insurance policies might be worth a look. But these policies are uniquely beneficial to individuals with significant assets or those who are at higher risk of being sued. If your money makes you a target, an umbrella policy can offer a shield. They are strongly recommended for individuals frequently targeted by legal action, such as landlords, business owners, or professionals in litigious fields.
How much umbrella insurance coverage do I need?
This isn’t a simple question to answer. If you’ve decided you need umbrella insurance in Illinois, you’ll want to talk to an insurance professional to determine the appropriate coverage for your specific circumstances.
You’ll want to take into consideration a number of factors including:
- Assets
- Income
- Debt
- Potential liabilities
- Industry
Most professionals will recommend that you purchase enough umbrella coverage to cover your net worth. This isn’t a bad rule of thumb. But like with any type of insurance, whatever Illinois umbrella insurance you build should be tailored to your individual circumstances.
What is the cost of umbrella insurance in Illinois?
We hate to sound like a broken record, but the cost of Illinois umbrella insurance – you guessed it – depends. Ingredients in the mix might include factors like your location and coverage limits. It also depends a lot on you, personally. Individual risk profiles can directly influence how much you pay for how much.
It should be noted that, as extensions of existing policies, umbrella policies are largely seen as affordable. It’s just a question of whether or not it’s the appropriate expenditure for your situation that has to be answered.
Does umbrella insurance cover everything?
No. But that’s going to be the case if you ask that question about any type of insurance under the sun.
While umbrella insurance offers broad coverage, it doesn’t cover every possible scenario. Intentional damage? Nope. Business activity damage that should be covered by a difference policy? Try again. Professional risks specific to your line of work? Unlikely.
The best way to figure out what your Illinois umbrella insurance policy covers is to build it. If you already have an umbrella policy, checking in with an insurance professional is a great way to make sure you’re clear on the terms.
Do I need to have specific underlying insurance policies to qualify for umbrella insurance in Illinois?
Yes, most insurance companies require you to have certain underlying policies, such as homeowners insurance or auto insurance, before you can purchase umbrella insurance. It’s really a question of practicality. Given that umbrella insurance policies offer tailored extensions of coverage on a specific asset, person, or business, there has to be something to extend off of, right?
But it also goes to the core of why umbrella insurance in Illinois can be so valuable. It’s not something you want to buy a la carte. When you work with an insurance professional like those at the David Nelson Agency, you’re able to not only get the initial policy that best suits your needs but also have a more informed conversation about what an appropriate umbrella policy would look like in your case. This kind of personalized service can be invaluable.
Is umbrella insurance worth it?
Maybe.
If your professional success, net worth, or position in life leaves you vulnerable to litigation, Illinois umbrella insurance offers significant financial protection and overall peace of mind.
If your circumstances do not leave you exceedingly vulnerable in this moment, an umbrella policy might not be a prudent or cost-effective solution. Not today, at least.
The right coverage for you depends on you. Get in touch with the David Nelson Agency today to find out what that might look like in your situation.