Umbrella insurance in Florida is liability insurance that covers claims above the limits of existing car and home liability policies. For example, if your auto liability coverage limit is $20,000 per accident, but you cause a pileup that does $300,000 in damage, umbrella insurance could cover the remaining $280,000.
Assuming you have state-minimum auto coverage, umbrella insurance in Florida will cover you for liability totaling more than your car insurance will cover. Additionally, umbrella insurance in Florida will cover certain claims that are not covered by the underlying insurance, like for slander and libel.
What Umbrella Insurance Covers in Florida
Liability in excess of auto/home insurance policy limits
Yes, umbrella insurance is worth it if the value of your assets exceeds your liability insurance limits. Umbrella policies are relatively inexpensive so they are worth the investment if you have significant assets you’re looking to protect from costly liability claims.
Umbrella insurance provides additional liability coverage, typically starting at $1 million, and it usually costs at least $150 to $300 per year. Umbrella policies also cover certain situations that don’t typically fall under … read full answerliability insurance, like libel and slander.
How To Decide If Umbrella Insurance Is Worth It
Add up the value of your assets, including your home equity, personal savings, and retirement accounts.
Compare your assets to the limits of your auto or homeowner’s liability insurance policy. If your assets exceed the current limits, then you should consider getting umbrella insurance.
Consider any factors that would make you more likely to have a liability claim filed against you, like owning a swimming pool or a dog.
Most home or auto liability insurance policies can only be purchased with maximum limits of $300,000 or $500,000, depending on the insurer. While these limits may be high enough for the average person, wealthier individuals with more assets may need even more protection. That’s when umbrella insurance is worthwhile. To learn more, check out WalletHub’s guide to umbrella insurance.
You should get umbrella insurance if your net worth is at least $1 million. Umbrella insurance supplements existing home and auto liability insurance, and it usually costs between $150 and $300 annually for the minimum $1 million in coverage.
You may also want to purchase an umbrella policy if your net worth is lower but still exceeds your home and auto liability insurance limits. After all, if you cause a multi-vehicle accident while driving, for example, you would be responsible for the accident victims’ medical bills. And if your personal liability limit is $300,000 while the total cost of the medical bills adds up to $400,000, then there would still be $100,000 left for an umbrella policy to cover.… read full answer
Similarly, you should consider umbrella insurance if you are at a high risk for being sued because of your job, your hobbies, or because you own high-risk leisure items like a pool or trampoline.
When You Should Get Umbrella Insurance
Your assets are greater than your home or car insurance policy limits.
Your work puts you at high-risk for a lawsuit.
You own a trampoline, hot tub, or swimming pool.
You participate in a hobby where you could injure someone else.
Key Things to Know About the Required Car Insurance in Florida
Covers other’s property damage and your medical expenses. … read full answerDrivers in Florida are required to have PIP insurance, which pays for the driver’s and passengers’ medical bills after an accident, regardless of fault. Property damage liability insurance pays for damage to others’ property caused by an accident you were at fault for.
The minimum liability requirements may not be enough. Even though Florida’s no-fault system requires drivers to file injury claims with their own insurer, the at-fault driver can be sued if they cause an accident that results in significant and permanent loss of an important bodily function, permanent injury, significant scarring or disfigurement, or death. As a result, it’s a good idea to purchase bodily injury liability insurance even though it’s not required, since it can help cover legal fees and other expenses if you cause a serious accident.
Liability insurance will not cover all events. Drivers should also consider purchasing other types of car insurance in order to better protect themselves. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder’s car.
There are penalties for driving without the minimum requirements. If Florida drivers do not purchase Florida’s minimum liability requirements, they will be subject to penalties for driving without insurance such as hefty fines and license suspension.
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