Umbrella Insurance in Kokomo, Indiana

These days, our society is lawsuit-happy and lawyers are awarding larger amounts of money than ever before. Most insurance policies have a limit on liability insurance. If an accident should occur where you have been determined to be at fault, do you have enough liability insurance to cover the costs? Since it is impossible to predict how much a judge may award the injured party, umbrella insurance is a needed protection for every policyholder.

At one time, umbrella insurance policies were typically only purchased by the rich. This is no longer the case. Nowadays, as legal fees and settlement costs recurring from a personal lawsuit can easily run into the tens of millions of dollars, umbrella insurance has become a modern day necessity.

What’s Covered?

Umbrella protection from Killingbeck Insurance & Tax Preparation covers your financial liability for a wide range of accidents and scenarios above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. Depending on the policy you choose, umbrella coverage can add an additional 1-5 million in liability protection that kicks in when the liability on the other policies has been exhausted. Examples of the types of coverage provided by an umbrella policy from Killingbeck Insurance & Tax Preparation include:

Bodily Injury Liability – Covers the cost of injuries suffered by another person. Examples include the cost of medical bills and/or liability claims as a result of:

  • Auto accident injuries for which you are deemed responsible;
  • Dog bite injuries;
  • Injuries sustained by another person on your property.

Property Damage Liability – Covers the cost of damage or loss to another person’s property. Property damage liability covers costs associated with:

  • Damage to vehicles or other property as the result of an accident you have been found to be responsible for;
  • Damages caused by your dog to another’s property;
  • Accidental damage to school property caused by your child.

Owners of Rental Units – Covers liability claims filed against landlords. Examples include costs associated with:

  • Someone becoming injured on your rental property and suing you for damages;
  • Your tenant’s dog attacking someone and you being sued for the injuries.

Let’s say, for example, that during a windstorm a branch from one of your trees falls on someone’s head. Even though the accident was not within your control, you will most likely be held responsible. You either settle out of court for an agreed upon amount, or if no agreement can be reached, the case goes before a judge. Say you have $250,000 of liability insurance coverage with your Kokomo, Indiana homeowner’s insurance policy. What happens if the judge awards the plaintiff $500,000? That means you’ll have to come up with the additional $250,000 to satisfy the claim on your own. This scenario could financially ruin many Americans, forcing them to lose their home, their automobiles, and anything else they have. Anything of value can be used to satisfy the judgment, and if you don’t have enough earnings to cover the amount, your future earnings and even any inheritance will be jeopardized.

Middle Income Earners: Those With the Most to Lose

At Killingbeck Insurance & Tax Preparation, we advise virtually all of our clients to invest in umbrella insurance. However, it’s especially critical for middle income earners. Unlike the rich, the middle class demographic typically does not have large cash reserves on hand to cover legal fees and personal damages once liability protection runs out. Without umbrella insurance, their assets are constantly in jeopardy. For the amount of added liability protection one receives, investing in umbrella insurance is always a safe bet.

But even umbrella insurance policies have a limit. When you sit down with your Killingbeck Insurance Agent, you will be asked to detail your assets, risks, and other factors to determine your umbrella policy limits. Of all these factors, your risk carries the most weight. Do you live in a wealthy part of town, or does your job affect the lives of many? Do you own property on which others may become easily injured, such as a bar or an ice-skating rink? These details will play a significant role in determining the limits of your Kokomo, Indiana umbrella insurance policy. People who run a greater risk of being sued may need a policy limit of $5 million or more.

Additionally, it is important to understand that umbrella insurance doesn’t cover everything. If you are sued and the court assesses punitive damages against you, this will not be covered by umbrella insurance. Putative damages are typically awarded in order to punish the person being sued for what the court deems to be outrageous or reckless conduct.

In most cases, you should have an insurance policy for everything you want to cover – your home, your car, your health, and your life. Rather than being a replacement for these types of coverages, an umbrella insurance policy should protect you in the unfortunate event that you are found to be at fault for some type of accident where you could be held liable for substantial damages - hundreds of thousands of dollars or more.

Umbrella Insurance: Massive Protection for Pennies a Day

You can buy umbrella policies from Killingbeck Insurance & Tax Preparation with $1 million limits for between $150 to $250 a year, depending on the number of cars, homes, ‘toys,’ and young drivers in your household. If you feel $1 million is not enough coverage, you can buy each extra $1 million of coverage from between $100 to $200. Think about this carefully. For only a few hundred dollars a year, you can increase your per-person liability limit exponentially, and the coverage applies to your auto, homeowners or renters, and ‘toys’ as well.

An umbrella policy from Killingbeck Insurance & Tax Preparation can give you added protection without a large added cost. Umbrella insurance is quite inexpensive, especially considering the added coverage you gain. Additionally, umbrella policies cover non-business activities in Kokomo, Indiana, and anywhere else in the world. Having the added protection of an umbrella insurance policy is coverage no one should go without. Our licensed agents will be happy to assist you in finding the perfect combination of coverage and value for your family’s needs.

Fill out our confidential online contact form or call us at (765) 452-8000 to get started today.