Category: Umbrella Insurance

At Capital Insurance, we try to serve Spokane, WA as a trusted friend and an insurance agency. You may have read that most insurance and financial consultants consider 40 to be the turning point for being able to completely rebuild retirement savings by the typical requirement age. We want to explain why and how umbrella insurance can save you from such an arduous task.

If You’re Found At Fault For An Accident

A lot can happen in life. You could incur liability by libeling someone or causing an accident. However it happens, if the court finds for the injured, you will have to pay a settlement. That means you will need to pay a lump sum of money to the injured.

Your home or auto insurance provides a limited amount of liability coverage. It may not cover the full settlement. What your insurance does not cover, you pay out of pocket. For some individuals, that means selling some stock; for others, it means making an early withdrawal from their retirement savings.

Withdrawing early money from retirement accounts, such as 401(k) accounts, incurs a 10 percent tax penalty and you then need to rebuild your IRA to its previous balance.

How Umbrella Insurance Helps

If a person pays out of pocket for a liability loss, that is what happens. Having umbrella insurance solves the problem of needing to pay out of pocket or rebuild savings, so you can provide for yourself in retirement.

If you have yet to reach the age of 40, you have time to rebuild your IRA to its prior balance by making extra deposits. It might require taking a part-time job, but it’s theoretically possible. After the age of 40, most individuals could not completely rebuild an IRA to its appropriate balance. It would require more deposits than legally allowed.

Umbrella insurance saves you from this scenario. Insurance agents recommend umbrella coverage more heartily for those 40 years of age and older for this reason. Umbrella coverage picks up where regular liability coverage leaves off. With it, when your primary policy, such as your auto coverage, pays out fully, the umbrella kicks in and covers the rest. You never need to access your retirement funds early. Umbrella coverage pays for the settlement for you.

Contact Us Today

Why wait and tempt fate? Protect your way of life in Spokane, WA with umbrella insurance. Contact Capital Insurance today to start your policy.

You may have insurance for your home, your car, your health, and your life, but do you have umbrella insurance? Umbrella insurance is designed to give you an extra layer of protection in the event that you are sued or held liable for damages. If you’re considering getting umbrella insurance, Capital Insurance in Spokane, WA is here to guide you.

Here are a few of the advantages of having umbrella insurance:

It Provides Extra Liability Coverage

Your home, auto, and health insurance policies all come with liability coverage. This coverage protects you financially if you are sued for damages or if you are found responsible for an accident. However, the liability limits on these policies are usually quite low. Umbrella insurance kicks in when you have exhausted the liability coverage on your other policies. This can be a lifesaver if you are facing a large lawsuit.

It Can Cover Certain Expenses That Other Policies Don’t

Even if you have great health insurance, there are certain expenses that may not be covered, such as long-term care or dental care. An umbrella policy can help fill in the gaps by covering these expenses. In addition, most umbrella policies will also cover you for lost wages if you are unable to work due to an injury. 

It’s Relatively Inexpensive

When you consider the peace of mind that umbrella insurance provides, it’s actually quite affordable. For a few hundred dollars per year, you can get coverage that will protect your assets in the event of a lawsuit. 

Contact Us Today

Umbrella insurance is one of those things that you hope you never need to use, but it’s nice to know it’s there just in case. If you don’t already have umbrella insurance, speak with your agent about adding it to your existing policy. It could save you a lot of money and headaches down the road. Contact Capital Insurance in Spokane, WA for all your insurance needs.

Umbrella insurance is the most misunderstood type of insurance. Many people have no idea what it is, what it does, and why they should have it. When it comes to who should have umbrella insurance, the answer is just about anyone. It provides an extra layer of liability protection that offers the peace of mind everyone wants. At Capital Insurance in Spokane, WA, we are a local independent agency with 18 years of experience providing exceptional service to our customers. 

Umbrella insurance is excess liability coverage. Picture a big red umbrella, you are underneath it all dry and protected from the storm going on around you. You represent your assets and the umbrella is your umbrella insurance. It offers the protection you need to weather the financial risks that surround you. 

Umbrella insurance is not a standalone policy. It is an extra layer of liability protection. It must be added to a policy that you already have with liability coverage. Some potential policies are home, auto, boat, motorcycle, motorhome, condo, and renters. The good news is that if you get the primary policy from the same carrier as the umbrella policy, you may be eligible for a multi-policy discount. 

How an umbrella policy works is that if you need to use your liability insurance when you get to the maximum of your coverage, your umbrella policy will kick in and cover you to the maximum limit on that policy. While your primary policy may cover a few hundred thousand dollars, most umbrella policies begin at one million dollars and go up to about five million. If you have assets like a home or savings, you owe it to yourself to make sure that you protect them from a judgment that could cause you to lose them. 

If you want to learn more about umbrella insurance, contact Capital insurance in Spokane, WA.