Category: Insurance

The Benefits of Umbrella Insurance in Crystal Lake, IL

While insurance coverage is a crucial safety net against extreme expenses or liabilities, there are instances when these policies can be exhausted, which could leave you in a difficult position. At August Vincent Insurance Agency, serving Crystal Lake, IL, and the surrounding areas, we strive to help you understand challenging situations and how to safeguard yourself.

What is Policy Exhaustion?

Every insurance policy has a maximum payout amount. If the expenses of a claim exceed this amount, then the policy is considered exhausted. This circumstance entails that you will be required to pay for the remaining expenses out of pocket, which could strain you financially.

How Can You Protect Yourself From This?

One effective way to protect yourself from policy exhaustion is to purchase umbrella insurance. Umbrella insurance is a special type of coverage that kicks in to pay for expenses that persist after another policy has been exhausted. It offers an added layer of financial safety.

Who Should Consider This Type of Insurance?

Although this insurance can benefit anyone, it’s particularly useful for people with numerous assets to protect them from liability claims. It’s also advantageous for individuals who run businesses or are engaged in high-risk jobs.

If you’d like to know more about umbrella insurance, please contact August Vincent Insurance Agency serving Crystal Lake, IL, and the surrounding areas.

Living in Crystal Lake, IL, you know that insurance is important, but with so many policies and options, it can feel like a lot. For instance, how much umbrella coverage do you actually need? How much is too much?

That’s a fair question, and that’s why we made yet another August Vincent Insurance Agency quick guide.

Is It Too Much?

Let’s start with the easy answer. In most cases, you do not need an umbrella plan covering more than your total net worth. That’s too much coverage.

Putting that in perspective, the average umbrella policy nationwide costs around $400 per year to provide $1 to $2 million in coverage. Thus, it is easy to get large amounts of umbrella coverage for relatively small premiums.

Another important point to note is that you will not be held liable for damages beyond your net worth unless extenuating circumstances exist (such as fraud). So, there’s little reason to extend an umbrella plan beyond your total net worth.

Is It Not Enough?

That said, there is such a thing as too little umbrella insurance. In most cases, you can’t even get an umbrella policy until your auto and home insurance provides at least $250,000 in total liability coverage (there are exceptions), so if your net worth is less than $250,000, you don’t usually need an umbrella plan.

That said, if your net worth is greater than the coverage you get from your other policies, you are exposed to risk.

The general recommendation is to have an umbrella policy that covers your total net worth minus what is covered by your other policies. It’s an easy rule, and it means you have good protection with one of the most cost-effective liability coverages you can get.

These guidelines can help you consider coverage, but umbrella policies are personal. So, talk to a person. Talk to your August Vincent Insurance Agency representative and get into the details. You want all of your assets in Crystal Lake, IL, covered.

For some people, anything that involves insurance can be complicated. This is even more true when the subject of umbrella insurance is brought up. If you’re considering choosing an umbrella insurance policy, you might have no idea how to go about doing so. Choosing umbrella insurance doesn’t have to be complicated, and here is an overview that can help you choose the policy that works best for you and your needs. 

Determine if you Really Need Umbrella Insurance

The first step to determining your needs when it comes to umbrella insurance is to determine whether you need this type of insurance. Umbrella insurance is an add-on that kicks in once your regular insurance funds have been exhausted following a claim. It is for wealthy individuals who are at risk of being sued for a number of reasons. If you are wealthy and you work with the public, then umbrella insurance is likely to be a good idea. On the other hand, if you’re not wealthy in the least, umbrella insurance probably isn’t for you. 

Do You Have Assets to Protect?

If you’re ever sued, and you don’t have the funds upfront, umbrella insurance can help. However, it would have to have been purchased prior to the incident. 

We Are Here To Help

As you can see, choosing an umbrella insurance policy doesn’t have to be difficult. If you follow this guide, you should be able to figure out a great plan that meets your needs. If you need a new insurance company, you may want to consider August Vincent Insurance Agency. We cover the Crystal Lake, IL area, and we’re here to serve you. If you live in Crystal Lake, IL, give us a call at August Vincent Insurance Agency, so we can provide you with a quote as well as the answers to any questions that you may have.

We buy insurance because accidents happen, despite our best intentions. However, some people don’t have the proper coverage for unexpected losses because they lack a vital part of the best insurance plans: umbrella insurance. To discuss how umbrella insurance can protect you and your family, contact our August Vincent Insurance Agency team serving Crystal Lake, IL.

Your Potential Liability

As an Illinoisan, you’ve experienced severe weather and know that slippery conditions can cause someone to fall on your property or contribute to an auto accident for which you are at fault. In either situation, your liability could exceed the amount covered by your home or auto policies, leaving you responsible for the rest. In the worst case, it could mean the loss of your savings, home, or other assets.

That is where umbrella insurance comes to the rescue by covering the amounts over your standard policies’ limits. Of course, umbrella insurance protects against "worst-case" scenarios, so most policyholders never need to tap into their coverage. But that also means umbrella policies are relatively inexpensive, so their value comes from providing you peace of mind, knowing your family is fully protected, even against unlikely events.

Besides supplementing your home and auto liabilities, umbrella policies can also cover legal and court costs resulting from accidents, making it vital protection for potential rainy days.

Working With August Vincent Insurance Agency

Knowing you and your family are protected is comforting in a world where anything can happen. So, if you live in or near Crystal Lake, IL, and want to discuss umbrella or other insurance protection, the August Vincent Insurance Agency team stands ready to help. Call us today to look at the options that make the most sense for you.