Personal Umbrella Insurance
When traditional liability limits are not sufficient, look to the Personal Umbrella Policy. How do you know when an umbrella policy is called for? It’s very simple. If your assets add up to more than your liability limits of your homeowner’s or personal auto policy, you need an umbrella.
For most homeowners, auto, boat and RV policies have maximum limits of liability of $300,000 an umbrella policy should be considered when your total assets are more than these limits. It’s not that unusual for the family assets to breach the limits of the policies you have in place.
Think about what can happen if you are charged with an at-fault accident. The person you hit is rushed to the emergency room then admitted to the hospital with multiple fractures and other injuries. Before you know it, the injury expenses total to $40,000, and the pain and suffering added in are another $50,000. Your auto policy with limits of $50,000 is not sufficient, and you will be paying out of pocket. If only you had listened to your agent and purchased that umbrella policy for only $300. All of this would easily have gone away. Don’t take that chance. It’s just too simple to protect yourself and your family.
There is also a benefit for you in the event of an accident. Most umbrella policies provide an additional level of liability for uninsured motorist coverage.What this means is that if you are injured in a car accident that is the fault of the other driver, and that driver does not carry sufficient limits for your injuries and pain and suffering, you can file a claim against your company for the tremendous amount of pain and suffering that often accompanies an injury.
Your umbrella will provide sufficient coverage for things that can happen away from home also. For example, an offhand remark could be considered slander by another party. This type of claim or lawsuit can go on endlessly with only your financial devastation in sight by the claimant. Having only normal liability limits with your homeowner’s insurance could leave you paying everything you have out of pocket. First, it’s your savings, then investments and eventually everything that is not protected by ERISA or retirement laws.
It’s important to understand that what you do or say that ends in a lawsuit is usually accidental but a lawsuit gets filed nonetheless. Your ability to respond to a lawsuit whether frivolous or not is the responsibility of your insurance company, but only up to the limits you purchase. Don’t get caught on the short end of a lawsuit. Contact us and speak with an experienced agent that will help you determine your risk and the most efficient way to cover it.