Umbrella Insurance in Louisiana
Experts break down Louisiana umbrella insurance costs, coverage, companies, and more.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
Do you own a home or drive a car in Louisiana? If so, you probably have homeowners insurance and auto insurance that protect you in case you injure someone or damage someone else’s property.
In most cases, your auto and home insurance will provide the coverage you need if you’re responsible for injuries or property damage. But what if you’re hit with that once-in-a-lifetime million-dollar lawsuit? In our increasingly lawsuit-happy society, what was once a very rare possibility is now something that you must seriously consider when you’re purchasing personal insurance in Louisiana.
Umbrella insurance can help you bridge the gap between your basic personal insurance policies and a million-dollar (or more) judgment against you. An independent insurance agent in Louisiana can help you find umbrella insurance that fits your needs and budget.
What Is Umbrella Insurance?
If you have Louisiana auto insurance, homeowners insurance, renters insurance, or condominium insurance, you also have liability insurance as an essential part of those policies.
Liability insurance protects you when you or a covered family member cause some type of property damage or physical injury to another person.
Liability insurance pays for repairing or replacing damaged property of others. It also pays for medical expenses for injured parties, and it even pays your attorney fees, court costs, and any financial settlements or judgments that you have to pay if you are sued. But both your auto insurance and your home insurance have coverage limits that are specified in the policy. If you’re sued, your policy limits may not be sufficient to cover a large financial settlement.
Umbrella insurance in Louisiana offers excess liability coverage that kicks in when the limits of an underlying policy—including homeowners insurance, renters insurance, condominium insurance, or auto insurance—have been exhausted.
What Does Umbrella Insurance Cover in Louisiana?
Umbrella insurance in Louisiana typically covers the following types of claims for any person that is covered under the primary insurance (auto, home, etc.):
- Personal injury
- Advertising injury
- Property damage liability
- Slander
- Libel
- Defamation of character
- False arrest, detention, or imprisonment
- Malicious prosecution
- Mental anguish
Umbrella policies offer “follow form coverage.” This means that the umbrella policy typically covers what the underlying policy does. What’s more, umbrella insurance may offer expanded coverage, including covering you worldwide. It might also cover a few circumstances that the underlying policy does not, such as claims for libel, slander, and false imprisonment.
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Who Needs Umbrella Insurance in Louisiana?
Umbrella insurance can offer the financial lifeline you need if you’re faced with a lawsuit.
But does everyone need an umbrella policy? It’s true that certain lifestyle factors or activities that you pursue can increase the likelihood of you being the target of a lawsuit. You might be more likely to be sued if you:
- Own a home
- Own a rental property
- Have a trampoline, pool, or hot tub
- Host large parties
- Have a teenage driver
- Own a dog
- Own a large home
Anyone with significant assets or an obvious “attractive nuisance” (e.g., a pool) should talk to their independent insurance agent about the need for umbrella insurance in Louisiana.
But remember, anyone can be sued for any reason, and million-dollar awards in personal injury cases are not uncommon. Consider your ability to pay such a judgment when deciding if you need umbrella insurance.
How Much Umbrella Insurance Do I Need in Louisiana?
Umbrella insurance is typically sold in million-dollar increments, such as $1 million, $2 million, or $5 million. Your independent insurance agent will help you decide how much additional liability coverage you need to appropriately cover your assets should you be sued.
The state of Louisiana does not set eligibility requirements for purchasing umbrella insurance. But insurance companies will usually require that you have a certain level of underlying home and auto insurance in order to purchase an umbrella policy.
Underlying coverage requirements may vary somewhat depending on the insurance company, but the typical requirements are as follows:
- Auto Insurance
- Bodily injury liability coverage of $250,000 per person/$500,000 per accident
- Homeowners insurance
- Personal liability coverage of $300,000
Some umbrella insurance companies require you to have your auto and homeowners insurance with them before they will issue you an umbrella policy.
Can You Deduct Umbrella Insurance on Your Taxes in Louisiana?
Personal umbrella insurance premiums are not usually deductible from your taxes. You may, however, be able to deduct a portion of your premiums as a business expense if you own rental properties that are covered along with other personal assets under one personal umbrella policy.
If you own a business and have a business umbrella policy that supplements your other business liability policies, your premiums may be tax deductible.
What Are the Best Business Insurance Companies in Louisiana?
It can be simple to find the best umbrella insurance companies in Louisiana. A local independent insurance agent can help you get umbrella insurance quotes from multiple insurance companies, so you can select the best policy for your needs and budget.
Why Shop Umbrella Insurance with a Louisiana Independent Insurance Agent?
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.
What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
Contact an agent today for a free, no-obligation consultation.