Are you one of the 93,000 retirees living in Spokane, Washington? Spokane is considered the 65th best place to live in the US, and the 112th best place to retire. This is because of its plethora of indoor and outdoor activities and the reasonable cost of living. Home prices and rent are slightly below the US average. Of course, if you’re retired in Spokane or thinking about retiring in Washington State, you may be wondering if you need umbrella insurance. The truth is that it could financially help you if you encounter an unusually large covered loss. For example, what would you do if someone fell in your home or on your property and the resulting injuries required extensive medical intervention? If you’re like most people, you’d explain that you’d file a claim on your homeowners insurance policy, but what would you do if the claim was lower than the medical bills? This is a scenario where having an umbrella policy would benefit you. Let’s look at umbrella insurance and its benefits in detail.
What Is Umbrella Insurance?
Umbrella insurance is a type of liability insurance that helps pay for expensive claims when they go above your standard policy’s limits. For example, if you have an umbrella policy for your car insurance and you happen to get into a very expensive accident, the umbrella insurance would pay for the excess costs that weren’t covered by your car insurance policy.
This means that if your car insurance covered up to $10,000 in property damage, which is the state minimum, and you actually caused $20,000 in property damage, your auto insurance policy would cover the first $10,000. The second $10,000 would have to be paid from your personal finances, if you didn’t have an umbrella policy.
What Might an Umbrella Policy Cover?
Umbrella policies are quite versatile, so much so, that you may be able to get a single, million-dollar policy, that covers claim overages for your home and car insurance. This is because the typical umbrella policy is designed to cover injuries to other people, like guests inside your home or the driver and passengers in the other car, as well as property damage. It may also help pay certain legal fees and judgments.
However, it’s important to understand that umbrella policies aren’t standalone policies. Instead, they work alongside your standard policies to help cover large claims that cost more than your standard policy limits.
Benefits of Getting an Umbrella Insurance Policy
As a retiree, you’re probably living off your investments and the savings that you’ve squirreled away throughout your career. For the average American, that amounts to $426,070 by the age of 65, according to Edward Jones. If you assume that there won’t be much more added to that amount, the average retiree has about 8 years of expenses covered. This is because the average retiree spends $50,000 a year. Now, if you’re in this situation or a similar situation, how would you pay for an unexpected high-dollar claim?
Let’s say that the above scenario isn’t $10,000. Let’s say that the claim totals $100,000 because you accidentally crashed into an expensive vehicle and all four passengers needed extended treatment at a hospital. If you’re the average retiree, a $100,000 claim could be as much as 25 percent of your retirement income. Of course, if you have a state minimum insurance policy, it would cover $10,000 worth of property damage and as much as $50,000 in medical expenses, but that would still leave you paying as much as $40,000. How would that affect your retirement?
The truth is that you shouldn’t have to worry about what you’d do if you were faced with a large lawsuit or insurance claim, and in order to give yourself peace of mind while you enjoy your golden years, you may want to consider getting an umbrella policy.
How Much Does an Umbrella Policy Cost?
Umbrella policies typically cost about $200 a year for up to $1,000,000 in coverage. The exact amount of the policy will depend on how many items you’re covering. Remember, a single umbrella policy can cover multiple items, like your house, outbuildings and vehicles. In order to get an accurate quote, it’s best to contact an agent, like those at Boyd Insurance Brokerage Inc.
Learn More About Umbrella Policies in Spokane, Washington from Boyd Insurance Brokerage Inc.
If you’re getting ready to retire or already retired, it may be a good idea to review your insurance coverages. Do you have an umbrella policy? Are you missing any other types of coverage, like RV, boat or motorcycle coverage? At Boyd Insurance Brokerage Inc. we can help you find an affordable umbrella insurance policy and review your other policies to make sure that you’re fully covered at affordable rates.
To get a quote for an umbrella policy, give us a call at 509-340-2693.
