Umbrella Insurance: Extra Protection for a Rainy Day

May is known for its unpredictable weather, and just like sudden rainstorms, life can throw unexpected events your way. That’s why many people turn to umbrella insurance coverage—an extra layer of financial protection that goes beyond your standard home, auto, or renters insurance policies. At Paramount Insurance Agency, we believe peace of mind should be part of every plan.

What Is Umbrella Insurance?

Umbrella insurance is a type of liability coverage that kicks in when your underlying insurance (like home or auto) reaches its limit. It helps protect your finances in the event of large claims or lawsuits that would otherwise leave you responsible for out-of-pocket costs.

Real-Life Examples of When You Might Need It

• Auto Accident: You cause a serious multi-car accident with damages that exceed your auto liability limits.
• Injury on Property: A guest is injured at your home and sues for medical expenses and damages beyond your homeowners policy.
• Lawsuits: You’re held liable for defamation, libel, or slander and face costly legal fees.

In these scenarios, umbrella insurance can help cover the excess costs—potentially saving your savings, assets, or even your home.

Who Should Consider Umbrella Insurance?

While umbrella policies are often associated with high-net-worth individuals, they’re a smart move for many people. You should consider this extra coverage if you:

• Own a home or rental property
• Have a teen driver in the household
• Host guests or gatherings often
• Own a boat, pool, trampoline, or dog
• Want extra peace of mind

How Much Coverage Do You Need?

Umbrella insurance is typically sold in increments of $1 million. The right amount depends on your assets, risks, and comfort level. Our agents at Paramount Insurance Agency can help assess your situation and recommend a coverage limit that makes sense for you.

Affordable, Flexible, and Worth It

Umbrella insurance is surprisingly affordable for the protection it offers—often just a few hundred dollars a year for $1 million in coverage. It’s a small investment that can make a huge difference if the unexpected happens.

Stay Protected with Paramount Insurance Agency

Rain or shine, Paramount Insurance Agency is here to help you prepare for life’s uncertainties. Reach out today to learn more about umbrella insurance coverage and how it can complement your current policies.

Want a second opinion on your insurance coverage? Contact us at 336-869-3335 for a free review and quote.

The post Umbrella Insurance: Extra Protection for a Rainy Day appeared first on Paramount Insurance Agency.

What is Umbrella Insurance? 

Umbrella insurance, otherwise known as excess liability insurance, is coverage that is designed to provide protection above and beyond what is exhausted under the liability limits on your primary insurance policy, such as auto or homeowners. Sometimes liability situations can occur that are gargantuan in nature and the lawsuits may render legal judgments that are in excess of $1 million.

Imagine having $300,000 limits of liability on your auto insurance policy when you cause an auto accident that results in catastrophic injuries and damages. You are now faced with a judgment of $2 million and without an umbrella, you will be held financially responsible for the balance of $1,700,000. Even if you don’t have this type of money, which most people don’t, your wages could be garnished, savings wiped out, and investments depleted. Everyone needs an umbrella!

Some Typical Characteristics of An Umbrella Insurance Policy

• In order to have an umbrella policy, you must have a primary policy in place (home, auto, business, etc.) with a certain amount of liability coverage. The amount required for the primary policy may be the minimum required limits or more. Discuss this with your local N.C. independent insurance agent.
• Umbrella insurance is NOT just for the wealthy people with lots of assets and money. Even if you don’t have a job and are found liable for an accident with damages in excess of the specified limits of liability, your future “estimated” wages could be garnished.
• Usually, a single umbrella policy will cover all of your family members, residing in your household.
• Umbrella insurance is NOT expensive relative to the coverage you get.
• If you insure a watercraft, motorcycle, or ATV, your umbrella policy may provide additional liability coverage on top of those policies as well. Be sure to inquire with your local N.C. independent insurance agent to verify your coverage on any of these vehicles.
• Weigh up the total value of your assets (home, car, inheritance, savings, investments) along with potential loss of future income to help determine how much coverage you may need under an umbrella insurance policy.

Don’t Get Soaked; Call Us Today  

It is always recommended that you call us with any questions regarding any insurance policy you have as well as information pertaining to umbrella insurance. Umbrella insurance can play a large role in your future so call us at 866-869-3335 to find out how much umbrella insurance is right or you. Don’t get soaked; grab an umbrella today!

The post Umbrella Insurance Offers Low Cost Asset Protection appeared first on Paramount Insurance Agency.

What is a N.C. Personal Umbrella Policy? 

A N.C. personal umbrella insurance policy is designed to provide protection for you and your family above and beyond (otherwise knows as excess liability insurance) the policy limits of your home, auto, or any other type of personal insurance policy you may have. Typically, an umbrella policy extends coverage protection from 1 million up to 10 million dollars at a nominal fee, considering that high level of protection.

In addition, a personal umbrella policy provides protection for the following things, but not limited to:

• Legal Defense Costs
• False Arrest
• Libel
• Slander
• False Imprisonment
• Wrongful Eviction
• And More!

True Story!

While travelling on a crowded interstate, a driver had several passengers in his vehicle and was pulling a boat behind the vehicle when he noticed traffic stopped ahead. When he encountered the stopped traffic, he misjudged the stopping time and rear-ended a tractor-trailer travelling in front of him. Unfortunately, the two passengers in his vehicle were killed as a result. With damages reaching almost 2 million dollars, this driver was fortunate to have a personal umbrella policy. Are you prepared should something like this happen to you?

What’s in Your Pocket?

Imagine that you caused an auto accident that resulted in a $900,000 judgment against you. Assume that your N.C. auto insurance policy has limits of $300,000 for total medical expenses, which has already been exhausted. Do you have the remaining $600,000 to pay out of pocket? If you are like most people, you don’t, so where will you get the money? You may end up having your wages garnished, liquidating your children’s college fund, or losing your home if you DO NOT have a personal umbrella policy to protect you. With a N.C. personal umbrella insurance policy, you would be covered for the entire $900,000 judgment and peace of mind restored.

Protect Yourself and Your ASSets Today

Don’t take a chance. Contact your N.C. independent insurance agent right now to find out more about a personal umbrella policy that is right for you. You have everything to lose if you don’t!

The post Cover Your ASSets with a Personal Umbrella Policy appeared first on Paramount Insurance Agency.

While your teen may be the exception, due to inexperience and immaturity teen drivers are involved in more accidents and those accidents are more costly than any other category of drivers.

Teen Drivers Are Five Times More Likely to Cause an Accident Than Experienced Drivers

You may already be familiar with this fact since it is the reason the premiums for teen drivers are so much higher than other drivers. Insurance is all about protecting both parties from risk; the higher the risk factors the higher the insurance premiums.

I recently spoke with a friend who is a parent of two teenage boys about whether they had an umbrella policy. He told me he thought it would be too expensive. My reaction was “Compared to what?”

When evaluating the need for a personal liability umbrella policy, you should first consider what assets you might lose if you or your teen are responsible for an accident that kills or injures others. Too many insurance consumers assume that the coverage amounts on their car insurance policies will be sufficient to cover any liabilities. But in the case of death or permanent debilitating injuries, those amounts are rarely enough.

Without sufficient liability insurance you could be forced to either sell property you own, deplete your investments or savings or satisfy judgments against you over time through a draft on your future earnings. You owe it to yourself and your family to explore the cost of a personal liability umbrella policy that would protect all of you if this type of life altering event occurs.

Personal Liability Umbrella policies are surprisingly reasonable given the protection they provide. I consider it the “sleep better at night knowing my assets are protected” policy!

Call us today to discuss your family’s needs and how we can help you get peace of mind knowing your covered.

Thank you for your business and referrals!

Tom

PS We’re always here for you if you have any questions about how you are protected. Feel free to give us a call at 866-869-3335.

The post Got a Teen Driver? You Need a Personal Liability Umbrella. appeared first on Paramount Insurance Agency.