Life is unpredictable, and as much as you may plan, there’s always something around the corner that never crossed your worried mind. If the unexpected occurs, do you have enough liability limits to protect your and your family’s assets the way you want? If you were found liable for an accident, would your current liability limits cover the judgment against you, or would your assets be at risk? With a Personal Umbrella policy, you’ll have the additional liability limits over and above those provided by your underlying policies. Your assets, as well as your future earnings, are covered.
What is umbrella insurance?
Umbrella Insurance provides additional liability coverage-over and above the limits on your auto and other personal liability policies. This extra protection is available in $1 million increments up to $10 million. And $1 million coverage can fit in your budget. It’s an affordable way to keep an extraordinary event from becoming a financial life-changer. Consider: The average jury award for auto accidents involving bodily injury and property damage exceeds $300,000. Liability awards for accidents in the home can be just as substantial.
Here are some of the ways an umbrella policy can help when covered events threaten your financial security:
Your child causes a car accident
While away at college, your 19-year-old causes an accident that seriously injures a tech company’s top executive. Your auto insurance liability limits may not be enough to cover the medical expenses and lost income while the executive recovers.
Your injured guest needs ongoing care
A guest at the pool party you’re hosting slips on your pool deck and hits her head. She’ll be okay-but will need back surgery and ongoing rehab. The cost of this care will likely exceed the limits on your homeowner’s policy.
Your injured friend can’t work
Your friend trips and falls over a toy left in the middle of a hallway by your young son. She won’t be able to work for some time, and the liability of your homeowner’s insurance may not be high enough to cover the medical bills and other compensation.
You flood your downstairs neighbor
You forget you left your bathtub running when you get distracted while checking for mail in your apartment building’s lobby. While you’re gone, the tub overflows-deluging your downstairs neighbor’s home office apartment. Renter’s Insurance won’t cover the full costs of damage to the property and business.
What does Umbrella Insurance cover?
A standard umbrella policy provides additional liability coverage for:•Your primary residence
• Two motorized vehicles
• Small Sailboats
• Motorboats with fewer than 50 horsepower
But you can also add optional umbrella coverage for other property and situations: Additional motorized vehicles; secondary or vacation homes; rental properties; unlicensed recreational vehicles; jet skis and jet sleds, vacant land; and uninsured/underinsured motorists.
Call your local insurance agent/broker today for further information.
