As you near retirement, you need umbrella insurance more than ever. If you lost a court case that required a large settlement that your home owner’s insurance did not completely cover, you would have to take the remainder of the settlement out of your savings or retirement fund.
The closer you are to retirement, the less time you have to reimburse your retirement fund or savings. An umbrella policy from Premier Insurance Agency solves this problem by paying the remainder of the settlement.
These policies cost little but provide priceless peace of mind. Any kind of slip and fall accident or another incident that injures a person or people at your Detroit, MI home or on your property requires you to pay for the damages. The typical home policy provides liability coverage in the amount of about ten percent of the home’s value or a flat rate, usually about $100,000. That may sound like a lot.
Consider the average medical costs and time away from work from a home accident and how commonly these incidents occur. Home and community accidents are the number three cause of death in the US. Accidental poisoning leads the list of how these home deaths occur, followed by falls and choking.
Before you say, “That cannot happen to me.” know that according to the National Safety Council, home and community accidents account for 37,600,000 medically treated injuries each year and 125,000 deaths. That costs the US $479.1 billion annually.
The average cost of a hospital stay per day in the US is $3,949. When you do the math, you quickly realize that one accident at your home that only injures a single person can wipe out the liability coverage on a home policy.
You need the secondary insurance that an umbrella policy provides. It kicks in once your home insurance pays out fully. You can purchase a million-dollar policy of umbrella coverage for a tiny premium, so it makes sense to add this to your insurance portfolio.
At Premier Insurance Agency of Detroit, MI, we believe in being safe, not sorry. Call us to learn more about umbrella insurance and add this coverage to your portfolio.