Personal umbrella insurance is an additional policy that can be purchased to extend the amount of coverage of your homeowners or auto policies in the event that a claim exceeds their limits. An umbrella could expand your coverage in the event of a serious auto accident where you are at fault, or if someone sustains injuries on your property. While most basic liability policies will have limits of up to $500,000, an umbrella can protect you up to $5M and even higher, depending on what you purchase.
Understanding Personal Umbrella Insurance
While an umbrella can expand the coverage amount available in the event of a liability claim, it can also do many other things. It can supplement the amount of bodily injury liability coverage for other people involved in an accident of which you are at fault. It can also cover personal injury, for example, if you are accused of libel, slander or defamation. A personal umbrella can also enhance the limits for property damage that you might cause. And, one other interesting feature of an umbrella is that it can expand the coverage territory to worldwide. A standard policy in the US will usually only cover claims in the US, Canada and the US territories.
The Financial Fallout Without Umbrella Insurance
To determine the amount of umbrella coverage you should purchase, you should not only look at the limits of your standard insurance policies, but at the assets you want to protect. If your teenaged son or daughter were to hit and severely injure a car full of college students, would your current policy have a high enough limit to cover their medical expenses, their future loss of income or even the funeral expenses of all the injured parties? If you answer “probably not,” then you should consider adding an umbrella to your insurance portfolio. Without an umbrella, you could be forced to sell your home, reach into savings or retirement accounts or even have your wages garnished/reduced to fill the gap between your standard policy limits and the amount of the actual claim. And, with the rise of exceptionally high jury awards, an umbrella is more important now than ever before.
Talk to a Brooks, Todd & McNeil Agent Today!
To explore in more detail the benefits of a personal umbrella, reach out to the team at Brooks, Todd & McNeil. Our agents can help you evaluate the limits of your current policies along with the value of your assets, future earnings potential, current lifestyle and how to protect them. To learn more about umbrellas, along with our other products and services, contact us today at (800) 448-4567.