As a responsible resident of Indiana, you likely already have various types of insurance coverage in place to protect your assets and provide peace of mind in the event of an unexpected loss or liability. However, it's essential to consider whether your existing policies provide adequate protection for all potential scenarios.
Umbrella insurance is designed to provide additional liability coverage beyond the limits of your existing policies, such as auto and homeowner's insurance. This coverage can protect you from large financial losses that may arise due to lawsuits or other legal claims.
Indiana has its fair share of risks that make umbrella insurance particularly important. Indiana is among the top ten states in the US for dog bite claims. In 2020 alone, insurance companies in Indiana paid out over $14 million in claims related to dog bites and attacks. While homeowners' insurance policies typically cover these types of claims, the coverage limits may not be enough to fully cover the cost of a severe injury or lawsuit.
Another area of concern in Indiana is auto accidents. According to the Indiana State Police, there were over 205,000 traffic accidents in the state in 2020, resulting in more than 800 fatalities and thousands of injuries. If you or a family member were to cause a severe accident resulting in significant injury or property damage, the liability coverage provided by your auto insurance policy may not be enough to cover all of the associated costs. An umbrella insurance policy can provide additional coverage to bridge the gap and protect your assets.
In 2020, the average cost of an umbrella insurance policy in Indiana was just $203 per year, but the coverage provided can range from $1 million to $10 million, depending on your needs. Furthermore, a survey by the Insurance Information Institute found that 1 in 10 households with assets of $1 million or more faced a liability lawsuit in the past year, demonstrating that the risk of lawsuits is significant.
While you may hope never to need umbrella insurance, the reality is that accidents and lawsuits can happen to anyone. With its relatively low cost and potentially high payout, umbrella insurance is a smart investment that can provide additional protection and peace of mind in case of unexpected events. Take the first step and talk to Thompson Insurance about adding umbrella insurance to your coverage.