Do you know if the liability coverage on your home and auto policy in Brainerd, MN is enough to protect you from a major lawsuit? The liability laws allow someone to sue you for damages that are more than what is covered under your liability coverage. If your insurance falls short, then you need to pay the difference. This is why umbrella insurance can be so important.

How Does Umbrella Insurance Work?

Umbrella insurance in Minnesota is high-limit secondary insurance that is designed to supplement the liability insurance you currently have. This policy picks up where your auto and home insurance leave off once those policies have been exhausted. For example, if you are sued for $1 million in bodily injuries after an auto accident, but you only have $500,000 of coverage, then you are on the hook for the remaining $500,000. An umbrella policy typically gives you another $1 million beyond the limits of your current coverage. You will be required to have the minimum limits in place before you are able to get an umbrella policy. Check with an agent at Lake Central Insurance Brokers to make sure your policies are up to date.

Do You Need Umbrella Insurance in Minnesota?

There are many reasons why people think they don’t want umbrella insurance in Brainerd, MN. You may assume you aren’t at risk for being sued, or you think you have enough coverage on existing policies. However, lawsuits can happen to anyone, no matter what you think. Every time you get in your car, you are at risk of getting into an accident. Certain factors can increase your risk even more for being sued, including owning a rental property, having a long commute, owning a swimming pool, or having a dog. If you are sued, you can incur legal fees and judgments against you that easily add up to millions of dollars. You would otherwise have to liquidate savings and your assets to pay for the rest of the damages. Future wages could be garnished if you aren’t able to pay.