Why Should I get Umbrella / Liability Coverage?

Bridget Hinckley, Owner / Agent

A Univeristy of Flordia, School of Business graduate, Bridget has been in the insurance industry her entire life. First working for two large national carriers in underwriting and then her family's Independent Agency, before going out on her own to found Hinckley Insurance.

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Umbrella Insurance Defined

Umbrella insurance, sometimes referred to as liability insurance, is a type of insurance policy that provides additional coverage beyond the limits of your primary insurance policies, such as auto insurance or homeowners insurance. In Florida, as in other states, umbrella insurance serves as an extra layer of protection for you and your assets in case you are held legally responsible for causing injury to someone else or damaging their property.

Here's how umbrella or liability insurance works:

Coverage Limits: Your primary insurance policies, like auto or homeowners insurance, have coverage limits that determine the maximum amount the policy will pay out in the event of a claim. If the damages or liabilities exceed these limits, you may be personally responsible for the remaining costs.

Additional Protection: Umbrella insurance provides additional liability coverage beyond the limits of your primary policies. It typically starts at a certain coverage threshold, such as $1 million, and can go much higher depending on your needs.

Wide Range of Coverage: Umbrella insurance can cover a variety of liability situations, including bodily injury, property damage, personal injury (such as libel or slander), and even legal defense costs.

Legal Expenses: In addition to covering damages you might owe, umbrella insurance can also help pay for legal defense costs if you are sued, which can be substantial.

Cost-Effective: Umbrella insurance is generally cost-effective, given the amount of coverage it provides relative to its premium costs. It offers a high level of protection for a relatively low price.

In Florida, as in other states, umbrella insurance can be crucial for individuals and families who want to protect their assets and financial well-being in the event of a significant liability claim. It can be particularly important in situations where legal and medical costs can escalate quickly, such as in auto accidents or incidents that occur on your property.

It's important to note that the specific terms and coverage options for umbrella insurance may vary from one insurance provider to another. Therefore, when considering umbrella insurance in Florida or any other location, it's advisable to consult with an insurance agent or broker to understand the details of the policy and ensure it meets your individual needs.

Call Bridget at Hinckley Insurance to Explore your Options 561-220-5974