Wisconsin Insurance Law: What to Know About Umbrella Insurance Policies

Umbrella insurance policies are an essential part of a comprehensive insurance strategy, particularly in Wisconsin. These policies provide an extra layer of liability protection beyond the limits of your standard homeowners, auto, or boat insurance. Understanding the nuances of umbrella insurance can safeguard your assets and offer peace of mind. Below, we explore key aspects of umbrella insurance policies under Wisconsin insurance law.

What is Umbrella Insurance?

Umbrella insurance is designed to protect you against large claims or lawsuits that can exceed the limits of your primary insurance policies. For example, if you have a car accident that results in damages amounting to $500,000 and your auto insurance policy only covers up to $300,000, an umbrella policy can cover the remaining amount. This added protection is crucial for protecting your assets from unforeseen circumstances.

Who Needs Umbrella Insurance in Wisconsin?

While umbrella insurance policies are not mandatory in Wisconsin, they are highly recommended for certain individuals. If you have significant assets, such as a home, investments, or savings, or if you are involved in activities that could lead to higher liability exposure, like owning a rental property or having a teenage driver, you should consider an umbrella policy. Wisconsin’s litigious environment makes having additional liability coverage a smart choice for many residents.

Coverage Limitations and Exclusions

When considering an umbrella policy, it’s important to understand its coverage limitations and exclusions. Umbrella policies typically cover personal liability, but they may not cover all types of claims. For instance, claims related to professional liability, business pursuits, or certain intentional acts are usually excluded. Residents of Wisconsin should review their primary insurance policies to ensure that they meet the minimum coverage requirements before purchasing an umbrella policy, as most umbrella insurers require this.

Cost of Umbrella Insurance in Wisconsin

One of the appealing aspects of umbrella insurance is its affordability. In Wisconsin, premiums can start as low as $150 to $300 per year for $1 million in coverage. Factors that influence these premiums include your location, underlying primary policies, the amount of coverage desired, and your personal risk factors. It’s recommended to gather quotes from several insurance providers to find the best rates and coverage options.

How to Purchase Umbrella Insurance

Purchasing umbrella insurance involves a few decisive steps. First, contact your current insurance provider to see if they offer umbrella policies. Often, obtaining an umbrella policy from the same company that provides your other insurance can yield a discount. For those who do not have an insurance provider, researching reputable companies and consulting with an insurance broker can help find the right policy.

Final Considerations

Umbrella insurance policies provide essential coverage that can protect against significant financial losses. If you live in Wisconsin and are considering increasing your liability protection, an umbrella insurance policy should be on your radar. Always consult with insurance professionals to tailor coverage to your specific needs and ensure that all aspects of your financial wellbeing are secured.

Ultimately, umbrella insurance serves as a safety net that extends beyond conventional policies, making it a valuable consideration for individuals looking to protect their financial futures in Wisconsin.