Personal Umbrella Insurance
Are you in a position or at a time in your life where you could be subject to lawsuits? Are you adequately covered if you were sued for a large amount? If you’re not sure are have some concerns, you might want to check into a personal umbrella insurance policy.
Umbrella insurance is a type of insurance policy that offers you additional liability insurance above what you have in your regular insurance policy. Umbrella policies are not purchased as a regular policy but must be purchased as add-ons to a policy you already have. Personal umbrella insurance is usually purchased to compliment your home or auto insurance. They’re most common with people who are at risk of being sued and are not adequately covered by their regular insurance.
Umbrella policies may be offered as different types of coverage. The most common are personal injury, bodily injury, property damage or landlord liability. What is typically not covered on by umbrella insurance are business losses, personal belongings, criminal or intentional acts, oral or written contracts. Here is an example of how an umbrella policy works and how it can benefit you.
Say you are involved in an at-fault accident where another individual was seriously injured. Your amount of liability on your auto insurance policy is $250,000. That means that’s the maximum amount your insurance company can pay out on your behalf for a lawsuit. That doesn’t mean it’s the most someone can sue you for, but that it’s the most you have to pay.
If the individual sues you for $1 million and wins the lawsuit, your auto insurance can only pay $250,000, which means you’ll have to pay the additional $750,000 yourself. If you have an umbrella insurance policy for $1 million, the additional $750,000 will come from there.
There are many benefits to having an umbrella insurance policy. They’re very inexpensive when you consider the amount of coverage they offer. They are also very popular because they offer the additional security of knowing that if you do get sued, you’ll have sufficient coverage. With the number of lawsuits increasing every year, umbrella insurance is more than worth the cost.