When Regular Insurance Isn’t Enough: Why You Need Umbrella Insurance

Most people assume their homeowners and auto insurance policies cover every situation they might face. While these policies provide critical protection, they each come with coverage limits.

What happens if you’re found liable in an accident or lawsuit that costs more than your policy covers? That’s where umbrella insurance steps in.

What Is Umbrella Insurance?
Umbrella insurance is an extra layer of liability protection that sits on top of your existing policies—such as auto, homeowners, or renters insurance. Once you’ve reached the liability limits on those underlying policies, your umbrella coverage kicks in to cover the remaining costs, up to its own higher limits.

Think of it like carrying an oversized umbrella on a stormy day: it shields you when the rain gets heavier than expected.

Why It Matters
Without umbrella coverage, you could be personally responsible for damages beyond your standard insurance limits. In today’s world, lawsuits and medical costs can easily reach hundreds of thousands—or even millions—of dollars.

Umbrella insurance helps safeguard not just your immediate savings, but also your long-term financial security, retirement accounts, and even future income.

Real-World Examples
Here are a few scenarios where umbrella coverage can make the difference:

• Auto Accident with Major Injuries
  You’re at fault in a car accident that causes severe injuries to another driver. Your auto insurance covers $300,000, but medical bills and damages total $1 million. Umbrella insurance could step in to pay the remaining $700,000.
• Homeowner Liability
  A guest slips on your icy walkway and suffers a traumatic injury. Medical expenses and legal claims exceed the liability limit of your homeowners policy. Umbrella coverage fills that financial gap.
• Personal Lawsuit
  Imagine being sued for libel after a heated social media exchange. Standard insurance usually doesn’t cover this, but many umbrella policies provide liability protection for situations like libel, slander, and defamation.

Affordable Peace of Mind
One of the most appealing aspects of umbrella insurance is its cost. For a relatively low annual premium, you can add $1 million or more in additional liability protection. When compared to the potential financial risk of an uncovered claim, umbrella insurance often proves to be one of the best values in personal insurance.

Who Should Consider It?
Umbrella insurance isn’t just for the wealthy. It’s smart for anyone who:

• Owns a home, car, or other assets
• Has children or teenagers (think about teen drivers or visiting friends)
• Wants to protect retirement savings and future income

Questions On Umbrella Insurance? Call Scalzo, Zogby & Wittig, Inc.
Life is unpredictable, and sometimes the unexpected “storm” is bigger than what standard policies can handle. Umbrella insurance provides that extra layer of financial protection—ensuring your assets, your family, and your peace of mind stay secure no matter what comes your way.

Call our service representatives today to answer your questions and get a quote. You’ll be glad you did.

Until next time,

Your SZW Team

SZW Insurance is your Utica area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.