A Personal Umbrella Policy used to be known as insurance for the wealthy, but with lawsuits being a common occurrence these days, many people are finding out that you do not have to be a millionaire to be sued like one.
A Personal Umbrella Policy is liability coverage over and above the liability coverage you carry on your homeowners, auto or boat policy and is sold in million dollar increments. It is also referred to as excess liability and is the additional protection you would want in case a judgment gets filed against you that exceeds the liability limits of your existing homeowners, auto or boat policy. Personal Umbrella Policies may also pay for your legal defense costs, lawyer fees and associated court costs, for a covered loss.
Are you getting ready to have a new teenage driver hit the road? If so, now is a good time to look in to getting a Personal Umbrella Policy. Many people I talk to tell me that they do not have anything for anyone to take, so why bother getting the insurance. My question to them is, “Do you have an income or the potential to earn a future income?” If so, consider the following scenario - your teenage driver is out driving the car with some friends, he is not paying attention to the road and ends up hitting someone. That person is killed. That person’s family files a lawsuit against you and they win a million dollar judgment. Your auto policy only had $300,000 worth of liability coverage. If they decide to enforce that judgment, they may be able to garnish your wages. Without that added liability through a Personal Umbrella Policy, you are responsible for the $700,000 that your auto policy is not going to pay out.
Let’s face it, you never know what is going to happen to you or your family members. I hope you would never have to go through such a life changing event. But if you did, wouldn’t you at least like to know that you have the protection to cover your family financially? A Personal Umbrella Policy provides you with that added protection and, surprisingly, they only cost a few hundred dollars per year, depending on how many assets you need to have covered. They also have Commercial Umbrella Policies for business owners as well.
If you are interested in learning more about an Umbrella Policy, give me a call. I would be happy to discuss any of your insurance needs.
This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy. Coverages are subject to individual insureds meeting underwriting qualifications.
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