Umbrella Insurance
Umbrella Insurance
Umbrella Insurance is the excess liability that you need to cover your assets in case of a lawsuit. You can be sued for any reason at anytime. If you own a home or car you will need home insurance and auto insurance, but if that coverage is not enough, the umbrella insurance will kick in to cover the excess liability that you can incur during a lawsuit. There are different limits of umbrella insurance that you can purchase from $1 million to $10 million in $1 million dollar increments. Umbrella insurance rates are determined by the amount of personal vehicles you own, recreational vehicles, properties, family members age(s), and driving/claims record.
How does an umbrella policy go into affect during an auto accident?
If an insured carries $250,000 per person bodily injury limits and $500,000 per accident bodily injury limits, and you cause an accident that causes bodily injury to the driver and their passenger that equals $500,000 per person, your umbrella insurance will take the place of the underlying auto insurance limits and pay out $1million dollars to the claimants that you caused bodily injury to.
Why Should I purchase personal umbrella insurance?
If you own a home or car you protect it with homeowners or auto insurance. However, ther are instances where the basic coverage is either not enough or it excludes coverage.
Consider more examples:
- You overgrown pine tree in your yard blows over from a windstorm, crashing through your neighbor's roof and injuring residents in their home.
- You severely injure or causes the death of one of more persons in an auto accident.
- Your son or daughter causes unintentional physical harm to another.
- A guest falls and hurst themselves on your property.
- Being sued for slander, invasion of privacy, or false citizens arrest
Would your basic insurance be adequate to protect your assets if you are liable for such catastrophic losses? Being a wealthy individual is not a prerequisite for getting Umbrella Insurance. The impending lawsuit could wipe out all your possession and your future earnings.