How Your Other Policies Help Gauge Umbrella Insurance

Living in South Kingstown, RI, having a few assets is common. Maybe you own your vehicle, a home, or anything else. When that’s the case, those assets can create liabilities if something goes wrong and you get sued.

You can consider an umbrella policy to help cover you in such a case. How much umbrella insurance do you need? The answer to that question depends partly on your other insurance policies. Fortunately, Kingston Insurance Agency LLC has a quick guide to help.

The Purpose of Umbrella Insurance

Gauging umbrella insurance makes some sense just by thinking about how it works. After all, umbrella insurance does not function on its own. Instead, it’s designed specifically to supplement liability coverage from your other policies.

If you get into an auto accident, umbrella insurance only kicks in after the auto policy is exhausted. If you have a liability issue with your home, it’s the same story. The primary insurance works first.

Filling in the Gaps

With this in mind, you can start by looking at the liability coverage in your other policies. Where does it cap, and how much does that leave you vulnerable? 

Naturally, the answer to this question depends on the value of your assets. If you have six figures of coverage and seven figures of assets, you need an umbrella policy to fill those gaps.

Remember one thing. You do not need multiple umbrella policies. A single umbrella policy will supplement your auto insurance, home insurance, boat insurance, etc. The only time you need an additional umbrella policy is to cover non-personal assets (such as a policy for a business you own).

If you want the best picture of the right umbrella policy for you and your lifestyle, have an easy conversation with your Kingston Insurance Agency LLC representative. They can help you identify your assets and coverage in South Kingstown, RI, and craft a policy from there.

Why South Kingstown Residents Need Umbrella Insurance: A Comprehensive Guide

The Exciting Life in South Kingstown, WI

Whether you love engaging in DIY projects at home, venturing out to explore the town, or sailing across the serene waterways, South Kingstown, WI provides a vibrant life. Amidst these thrilling activities, it’s crucial to have adequate insurance coverage. And that’s where umbrella insurance, a critical albeit often neglected component of an insurance suite, steps in. Allow our Kingston Insurance Agency LLC experts to illustrate why it’s so crucial.

The Remarkable Power of Umbrella Insurance

Imagine a scenario where an accident exceeds your regular insurance policy limits, a reality that’s always a possibility, given how unpredictable costs associated with accidents can be. That’s where an umbrella policy shines. It’s designed to cover what your regular insurance policies, such as homeowners, auto, and watercraft insurance, cannot.

In a scenario where a policy covers $10,000 of damage, and an accident results in $20,000 of damage, an umbrella policy would cover the remaining difference. Without this umbrella insurance, you’ll have to bear these costs, which can be disastrous for your finances.

Achieving Sufficient Coverage

The coverage limit on your umbrella policy should be individualized based on your personal circumstances, habits, and existing policy coverage. Lighter umbrella coverage could suffice if your other policies already offer comprehensive coverage. However, if your regular policies only provide the bare minimum, having a hefty umbrella policy might be prudent.

Let Kingston Insurance Agency LLC Assist You

There’s no need to venture into the world of umbrella insurance alone. Our team at Kingston Insurance Agency LLC will accompany you every step of the way and assist in choosing the right umbrella insurance policy for you in South Kingstown, RI. Contact us today to receive a commitment-free quote.

Why is umbrella insurance called secondary insurance?

At Kingston Insurance Agency LLC, we want our clients to understand their insurance and how it works. When you read a policy document that refers to umbrella insurance as secondary insurance, you might wonder what that means.

Primary vs. Secondary

A primary insurance policy covers a piece of property with multiple coverages, such as structural, personal property, and liability in a South Kingstown, RI home or RV policy. A secondary policy offers added coverage of one type in the primary policy that enhances its coverage. Umbrella, a secondary liability policy, adds to the individual’s or business’s liability coverage, so when the primary policy pays out fully, the umbrella policy pays any remaining costs up to its policy limit.

Which Policies Qualify as Primary for Umbrella Coverage?

Any policy that includes a liability component can serve as your primary policy to qualify a policyholder for umbrella policies. You can add umbrella coverage to any of the following primary insurance policies:

  • Homeowners
  • Renters
  • Motorhome
  • Auto
  • Recreational toys (ATVs, dune buggies, etc.)
  • Business liability.

Umbrella only adds more liability coverage.

Why Add More Liability Coverage?

Even if you maximize the liability coverage on the primary policy, it may not offer enough to cover the settlement for an accident for which authorities found you at fault. With a single night’s hospital stay costing $8,000 on average, an auto accident or a pool accident can cause high medical bills that you must pay. A court may award the injured a 

judgment for pain and suffering, which you also must pay. The umbrella insurance ensures you don’t have to pay out of pocket.

Contact Us to Start Your Umbrella Policy

Contact Kingston Insurance Agency LLC, serving the South Kingstown, RI area with the insurance it needs. Let us help you add umbrella insurance to your primary policies to improve your financial security. Call or email us today.

Does umbrella insurance replace my other policies?

Does umbrella insurance from Kingston Insurance Agency LLC replace my other policies? The answer is no. Umbrella insurance here in the South Kingstown, RI area is an additional form of liability coverage that provides extra financial protection beyond the limits of your traditional auto and homeowners insurance policies. It offers broader coverage for liabilities, including libel and slander, as well as covering legal costs if you are sued. 

Why Umbrella Insurance?

Umbrella insurance does not replace your existing policies; rather it acts as an additional layer of protection for those times when your primary policies don’t offer enough coverage. For example, if you were to be sued for a large amount of money and the limit of your primary policy was too low to cover all damages, then umbrella insurance would be able to provide the additional coverage needed to cover the remainder. 

Umbrella insurance is an economical way to protect you and your family from potential financial ruin. It can provide invaluable peace of mind in the event of a serious lawsuit, such as one resulting from a car accident or a medical malpractice claim. 

An umbrella policy is typically very affordable and provides much higher limits of coverage than traditional policies. Policies are usually available for amounts ranging from $1 million to $10 million. Depending on your particular situation, you may want to purchase additional coverage beyond that amount.

Ultimately, an umbrella policy provides an extra layer of security and peace of mind that can be invaluable in the long run. A sound insurance strategy should include both primary and umbrella policies, as they work together to provide comprehensive protection for your family and your assets. 

Reach Out To Us

For more information, give us at Kingston Insurance Agency LLC a call today. We are proud to serve the South Kingstown, RI area.

Is it time to add an umbrella policy to the insurance protecting your business?

Kingston Insurance Agency LLC is here for business owners in South Kingstown, RI and the surrounding areas. If you are looking to boost your liability protection, contact our office today to learn more about the umbrella policy options currently available.

Umbrella insurance can help protect your local business

When it comes to protecting a local business, liability coverage is important. As a business grows and becomes more established, its liability risk and exposure often increase. A primary commercial policy will only provide a certain level of protection. And, once that policy is exhausted the umbrella policy will come into play to protect your company’s assets. 

And, depending on how the company is structured, the owners could potentially be held personally liable for any damages that exceed the amount of coverage provided by the primary policy. This is why having an umbrella policy in place is so important. Having this protection in place is an effective way to ensure that your company has the coverage it needs.

Now is a good time to take a closer look at an umbrella insurance policy for your local business. Our team is here to help you determine which policy can meet your business’s unique needs. Adding this insurance type to your commercial insurance portfolio is an effective way to make sure that your business and its owners are protected from liability risk.

Contact our office today

If you own or operate a business in the South Kingstown, RI area, you can depend on the Kingston Insurance Agency LLC team for all of your insurance needs. Contact us today to set up an appointment to learn more about how an umbrella insurance policy can help protect your business. 

How Does Umbrella Insurance Work?

If you’re like most people, you probably have some form of insurance to protect your home, car, and health. But what about protecting your assets? That’s where umbrella insurance comes in. Kingston Insurance Agency LLC South Kingstown, RI is here to explain how this policy works and why you may need it.

What Is Umbrella Insurance?

An umbrella policy is an insurance policy that acts as a safety net, providing liability coverage over and above the limits of your other policies. It kicks in when you’ve reached the limit on those other policies and can help provide financial protection in the event that you’re sued for damages. 

For example, let’s say you’re involved in a car accident that wasn’t your fault, and the other driver sues you for $500,000. If you have a $300,000 limit on your auto insurance policy, the umbrella policy would kick in to cover the remaining $200,000. Umbrella insurance can also provide coverage for claims that may not be covered by your other policies, such as libel or slander. 

How Much Umbrella Insurance Do You Need?

The amount of coverage you need will depend on several factors, such as the assets you own, the amount of liability coverage you already have, and your risk tolerance. 

As a general rule of thumb, experts recommend carrying umbrella insurance equal to at least 1-2 times your net worth. So if you have a net worth of $500,000, you should carry $1 million to $2 million in umbrella coverage. 

Of course, this is just a general guideline. You may need more (or less) depending on your unique circumstances. A good place to start is by looking at the limits on your homeowners and auto insurance policies and determining whether those limits are adequate to protect your assets. If not, then umbrella insurance is probably a good idea. 

In most cases, umbrella insurance policies start at $1 million in coverage but can go up to $5 million or more. The cost of an umbrella policy will depend on the amount of coverage you purchase as well as factors like your age, gender, credit score, driving record, and claims history. 

Get Umbrella Insurance Today

Umbrella insurance can go a long way in helping you. Now that you know how it works, contact Kingston Insurance Agency LLC in South Kingstown, RI for a quote or consultation.

What Does Umbrella Insurance Cover?

On the hunt for umbrella insurance in South Kingstown, RI? Look no further than Kingston Insurance Agency LLC – we’ve got the team and knowledge to help you build a custom insurance plan that checks all the boxes. 

Umbrella insurance can be confusing; many people wonder how necessary it really is, or if they’re just wasting their money. We’re here to tell you umbrella insurance is worth the investment for many reasons, the most important being your peace of mind. 

What does umbrella insurance provide?

1. Property damage liability

This can include scenarios like the property (vehicles, personal property) of guests at your home getting damaged or destroyed

2. Bodily injury liability 

Hospital bills like exams and treatment expenses

There are many other costs and coverage that umbrella insurance covers, and there is certainly a plan out there that can protect you and your loved ones. The investments we make, like vehicles, buying a home, recreational vehicles, and more can all be covered under the right umbrella insurance policy. 

Like all insurance, umbrella insurance provides peace of mind when something happens. You can’t plan for everything in life, but you can be prepared by having appropriate insurance and a full coverage policy for protection. 

If you own or rent a property, have a vehicle, own a boat or RV, have pets or children, umbrella insurance can provide you with additional coverage that will have you resting easily at night, knowing your assets and investments are properly insured. 

If you’re a resident of South Kingstown, RI and are looking for an insurance agent, contact the team at Kingston Insurance Agency LLC. We’re here to help you find the best insurance policy for your lifestyle needs, and we’d love to work with you.