Why do you need a personal umbrella policy?
There are a number of reasons why you should have a personal umbrella policy. First, if you don’t know what a personal umbrella policy is, it basically provides excess coverage should the liability limits on your personal auto and/or homeowners policy be used up. For example, if you have a $500,000 personal liability limit on your homeowners policy and you have a liability claim for $750,000, your homeowners policy would pay the first $500,000 and then IF you have an umbrella policy, it would pay the remaining $250,000. Typically, umbrella policies can be purchased in increments of $1,000,000.
Here are a few examples of situations where an umbrella policy could protect you & your family’s financial well-being:
– A guest of yours is severely injured while diving into the pool at your home and is unable to work. Between the medical bills and the lost wages, the total amount they are suing you for (yes, even friends will sue you) is $1,000,000. You have $500,000 in liability coverage on your homeowners. If you have an umbrella policy, that will cover the remaining $500,000. If you don’t, your house may become your friends house.
– You severely injure a doctor in an auto accident. Again, between the lost wages and medical bills, the claim is worth $1,000,000 which is much more than your auto liability limits of $250,000 per person. Your umbrella policy would step in and pay the remaining $750,000.
– You’re playing golf and you shank one into someones backyard and seriously injure someone. That someone is a lawyer who makes 6 figures. You can bet he’ll be suing you for his medical bills, lost wages, & future earnings. Your homeowners liability (which you can also get if you are a renter) will provide some coverage but will it be enough to fully pay the claim? If it’s not, your umbrella policy will kick in and cover the balance.
– You are driving home after you hit that lawyer with the golf ball when you’re hit by an uninsured driver (over 10% of drivers out there don’t have any insurance at all…even more have low/inadequate limits). Your injuries are very serious and you’re unable to work. You can’t sue the other driver because that person has no assets and no insurance so now what do you do? Assuming you have uninsured/underinsured coverage that may help but that could quickly be used up and now you are on the hook….unless you have an umbrella policy which provides excess uninsured/underinsured coverage.
If you drive a car, if you ever have friends over your home, if you own a pool, if you play golf or have other hobbies….basically, if you ever leave your home, there is a chance that something could happen and you need an umbrella policy! Get a quote on a personal umbrella TODAY!