What would happen if you were held liable in a lawsuit for a settlement that exceeds the limits of your insurance coverage? As an example, someone slips and falls in your driveway and you run over them, causing serious injury or even death. The damages could reach as high as $10,000,000. If you have a liability limit of $1,000,000 on both your homeowners and auto policies, you can face financial ruin. A personal excess liability or umbrella policy will help to cover the additional damages.
An umbrella policy provides liability coverage that becomes effective when the underlying coverage limits provided by your automobile, homeowners, boat or recreational vehicle policy are exceeded. These policies provide broad coverage that may not be covered by your other insurance policies.
What this means in actuality, is that you will not lose your home, savings or retirement assets in the event that you injure another person or their property. It will also protect your assets when an accident happens to someone else while on your property, such as a dog bite or a child falling off of a trampoline.
While most auto and home insurance policies provide some level of personal liability coverage, it is often not enough to cover a large settlement. Look around your home and the assets you have worked so hard to acquire. How would you feel if you were to lose all of this due to a lawsuit? An umbrella policy is a good investment in your present and future financial security.
The other good news is that personal umbrella polices are relatively inexpensive, about $350 for every one million dollars worth of coverage. The consensus among financial advisors is that the coverage on personal liability insurance should roughly equal your net worth. It is often bundled with your homeowners insurance so that you can see your total liability coverage. A personal umbrella policy will not get someone out of a criminal charge due to negligence.
It is important to protect your family, assets and your future. A personal liability policy is an easy and inexpensive way to do this. This protection is especially important if you have a pool, dog or trampoline, keep firearms in your home, entertain frequently, commute a long distance to work or have a teenager that drives. Berkley Brokerage Corp. can help you decide how much liability coverage you need. Give us a call today so that you have the protection you need and the peace of mind that you deserve.