Personal Liability/Umbrella Insurance
How does $200 to $300 dollars a year sound for a policy that will extend the liability limits of both your auto AND homeowner policies by $1,000,000?
No longer for the superich
Insurance coverage is a living, constantly changing product that is not strictly about the numbers. As societal trends change, so must insurance coverage, which is why umbrella policies are one of the fastest growing niches in insurance coverage today.
As little as twenty-five years ago, the likelihood of getting sued was remote, typically happening to the rich only – people who could clearly afford to pay. This is no longer the case. Personal injury cases among the middle income population have skyrocketed in the last twenty years and show no signs of slowing down. In today’s world, it is no longer practical to assume that you won’t get sued if you are in a car accident that severely injures another person, or if a salesman trips on your walkway and sues you for negligence because of that crack you’ve been meaning to do something about.
Here’s how it works (and why it pays to own an Umbrella policy)
Your auto policy has $500,000 worth of liability insurance. You rear end a car in stormy weather, which causes the driver of the other vehicle extensive injuries. They sue you for their expenses, which total $1 million dollars. Where are you going to get the other $500,000? What if a passenger in the other car dies? You can expect a wrongful death lawsuit, which means the numbers above would be even higher.
How does spending $200 a year to prevent the above scenario sound to you now?
If you are sued for more than your car or homeowners limits allow and you do not have an umbrella policy, your property, such as your home and all of its contents, vehicles, stocks, even your salary, may be at risk. An umbrella policy would cover everything you own as well as potential earnings from your job and investments.