Umbrella Liability Insurance

We live in a society in which people are sued for frivolous reasons. So what can you do? Be sure you are adequately protected.

If you have purchased homeowners or auto insurance, you have some liability coverage. If you are liable for an accident (you cause it) and someone decides to sue you, this part of your insurance kicks in. But what if the person decides to sue for $1 million and the maximum coverage on your auto insurance is $300,000? Where does the rest of the money come from it the jury decides in the other person's favor? From your assets! And your future wages can be garnished as well.

Sadly, umbrella liability coverage is needed in our world today. This liability insurance is purchased in face amounts of $1 to $5 million. This is a cover your assets (CYA) type of insurance. As the image of an umbrella implies, it does cover you when you other coverage is not enough. So if you get sued for $1 million, $300,000 less your deductible would come from your auto insurance, and the rest would come from your umbrella policy.

We live in a society in which people are sued for frivolous reasons, and worse, juries often award exorbitant damages. So what can you do? Be sure you are adequately protected. Review your lifestyle. Do you have ea dog that sometimes nips, a snowmobile, a speed boat that your kids can take out on the lake, a business in your home with clients or employees coming and going? If so, you may need the added protection of an umbrella policy. A $1 million policy can be had for less that $300 in annual premiums.