In today’s litigious society, having adequate personal liability protection is crucial. Even if you don’t consider yourself of great financial worth a lawsuit against you could deal a devastating blow, you don’t have to be a millionaire to be sued like one. Although the more you have, the more you are at risk. You can buy a separate personal umbrella policy to provide extra liability protection in the case that you might be sued.
The Umbrella Policy, which also known as Personal Excess Coverage, is named so because it acts like an umbrella sitting on top of your auto, home and other personal insurance policies to provide extra protection. The policy will increase your liability coverage for you and your family for lawsuits that result from injuries others sustain while on your property, or as a result of an accident involving your automobile, home, boat, recreational vehicles, or RV.
Without the umbrella coverage all of your assets could be at risk if a liability suit is filed against you, the goal of an Umbrella policy is to keep your assets from becoming liabilities. You should consider purchasing an umbrella policy if:
Your assets are greater than your liability limits.
You are financially responsible for children.
You frequently hosts guests on your property.
Your residence includes a swimming pool.
You own watercraft or off-road vehicles.
You own rental or vacation properties.
You participate in volunteer activities.
Umbrella liability limits start at $1,000,000; however, limits up to $10,000,000 can be secured depending on your coverage needs.
An umbrella policy insuring one house with two autos often is less than $200 per year in annual premium for an additional $1,000,000 of liability coverage.