Umbrella Insurance

Elevating Your Protection in Alpharetta

In a world where unforeseen events can lead to significant financial liabilities, having basic insurance policies – like auto and homeowners – is essential. However, there are times when an unexpected accident or lawsuit can exceed the limits of your primary coverages, potentially exposing your personal assets to devastating financial risk. That’s where Umbrella Insurance steps in, providing an extra layer of broad protection that elevates your peace of mind. At Craddock Insurance Services: Alpharetta, Rick Craddock and our team often recommend this powerful policy to our clients, ensuring they’re shielded from even the most severe financial storms.

Think of Umbrella Insurance as an additional safety net that kicks in when your underlying liability limits from your homeowners, auto, or boat insurance policies are exhausted. It provides substantial additional coverage – often in increments of $1 million or more – over and above what your primary policies would pay out. This “excess liability” protection is crucial in today’s litigious society, where jury awards and settlement costs can quickly skyrocket.

Let’s illustrate with a few scenarios where Umbrella Insurance can make a critical difference for Alpharetta residents:

• Serious Auto Accident: Imagine you’re at fault in a major car accident on a busy Alpharetta road. Your auto insurance liability limit is $500,000, but the total damages (medical bills for multiple injured parties, lost wages, pain and suffering) amount to $1.5 million. Without an umbrella policy, you would be personally responsible for the remaining $1 million. With an umbrella policy, it would kick in to cover the difference, protecting your savings, investments, and future earnings.
• Incident on Your Property: A guest slips by your pool, sustains a severe head injury, and sues you for $2 million. Your homeowners liability limit is $300,000. Your umbrella policy would cover the additional $1.7 million, protecting your home and assets. This is especially relevant for Alpharetta homeowners with features like pools, trampolines, or even just large properties where incidents could occur.
• Reputational Harm: You unknowingly post something on social media that is deemed defamatory, leading to a lawsuit against you. While some homeowners policies offer limited personal injury coverage (which can include libel/slander), an umbrella policy often provides broader and higher limits for such claims.
• Boat or RV Accident: If you own a boat on Lake Lanier or an RV you take on adventures, and an accident occurs resulting in significant injury or damage beyond your primary boat or RV insurance limits, your umbrella policy would step in to cover the excess.

One of the most attractive aspects of Umbrella Insurance is its broad coverage. It typically extends beyond just incidents involving your home or car. It can cover things like:

• False arrest, detention, or imprisonment.
• Malicious prosecution.
• Wrongful eviction or entry.
• Libel, slander, or defamation of character.
• Certain types of rental property exposures.

This expansive protection means that while your primary policies handle the common, everyday risks, your umbrella policy acts as a comprehensive safety net for those truly unforeseen and financially catastrophic events.

Rick Craddock and the team at Craddock Insurance Services: Alpharetta often find that clients are surprised by how affordable an umbrella policy can be, especially considering the immense amount of additional coverage it provides. The cost is often far less than increasing the liability limits on individual policies to the same extent. Typically, to qualify for an umbrella policy, you’ll need to maintain certain minimum liability limits on your underlying auto and homeowners policies. This ensures that the umbrella policy truly acts as excess coverage.

Investing in an umbrella policy is a smart financial decision for anyone in Alpharetta with significant assets to protect, or for those who simply want an extra layer of security against the unpredictability of life. Rick Craddock is here to discuss your personal risk profile, review your current coverages, and help you determine the ideal level of umbrella protection to safeguard your financial future. Let us help you elevate your peace of mind.