What can Umbrella Insurance do for you?
You may think that simply because you have a homeowner’s and auto insurance policies that you are covered. However, there may be situations that you may come across, making the above thought not necessarily true.
For example, in the event that one of your guests slips and falls on your property, causing them to suffer from serious injuries, you may find your homeowner’s policy’s liability coverage may not pay out all the expenses that a serious injury can incur, including medical expenses and lost wages, leaving you trying to figure out how will you come up with the additional money needed to cover these.
How Umbrella Coverage Can Help
A personal umbrella policy can be huge in ensuring all expenses are covered and are designed to extend your liability coverage beyond your auto and homeowner’s policies. Having a Personal Umbrella Policy coverage will help to ensure you are covered in the event your other policies don’t, kicking in once you have reached the limit of your standard policy, and making a huge impact when facing a large liability claim.
Personal umbrella policies are typically available in million-dollar increments, covering between $1 million and $5 million. And while you may be thinking that these amounts seem high, it is important to know and understand that 13% of personal injury liability awards and settlements total $1 million or more, especially with today’s higher health care costs and hefty litigation awards.
Personal umbrella policies can be especially helpful for those with considerable assets, as well as for those without much money in the bank. If you have few savings, an umbrella policy can provide you with the funds necessary to cover a large liability cost. And if you have money, unfortunately, opportunists may be more likely to file lawsuits, knowing that you have the funds available to pay their settlement.