Umbrella insurance in New Hampshire 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 New Hampshire will cover you for liability totaling more than $25,000 per person ($50,000 per accident) for bodily injuries and $5,000 for property damage. Additionally, umbrella insurance in New Hampshire will cover certain claims that are not covered by the underlying insurance, like for slander and libel.
What Umbrella Insurance Covers in New Hampshire
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.
Even though New Hampshire doesn’t always require liability insurance, going without it is risky. Buying coverage now can shield you from the financial consequences of causing a serious accident in the future, which could include lawsuits, seized assets, and garnished wages. And if you lease or finance a car, your lender or lessor will likely require you to carry insurance.
Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder’s own injuries or property. For instance, collision insurance covers damage to the policyholder’s car regardless of fault. And comprehensive insurance pays if the policyholder’s vehicle is damaged by something besides an accident, like a natural disaster or vandalism.
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