Are we talking about the weather forecast? Nope! We’re not talking about that kind of umbrella. We’re talking about why you need PERSONAL UMBRELLA LIABILITY.
A personal umbrella policy is protection for you and your assets above and beyond your liability coverage for your home and auto insurance.
First, just so we’re all on the same page, liability coverage is the part of your policy that protects you from lawsuits and legal hassles if you cause injury to someone or damage their property. Liability for bodily injury or property damage pays the injured party.
You probably already know about this because when you bought your car and home insurance, you bought liability insurance.
Each state has laws requiring drivers and homeowners to purchase insurance because without it, people have no recourse but to sue each other for reparations when injury or property damages occur.
If we look at auto insurance, there are progressively increasing levels of coverage you can purchase. Most people carry split limits although some purchase Combined Single Limit – but we’ll go with the most common scenario.
In Nebraska the state minimum protection you must have as a driver is 25/50/25. You may have seen those numbers on your insurance card or declarations page when you get your policy.
Each number represents the maximum dollar amount that gets paid by the insurance company if you have an accident that causes injury or damage to someone else.
In this example, the amount of payout if you are at fault equates to $25,000 per person injured in the accident with a maximum payout of $50,000 for everyone in the accident and then another $25,000 for property damage.
Liability also applies to your homeowners policy. If someone gets hurt on your property perhaps slipping and falling on ice or getting bit by your dog, your homeowners liability is there to pay for those injury’s.
But, in the ever increasingly litigious country we live in, could you survive a costly lawsuit?
Here’s where an umbrella can really help protect you. It is excess liability protection!
If your liability policy isn’t enough pay for someone’s medical costs and property damage, the umbrella kicks in to give you that added financial safety net.
In a catastrophic accident, medical bills and property damage can easily be in the thousands of dollars. If multiple people were involved in the accident, the costs can easily be hundreds of thousand dollars.
10 Reasons You Should Have A Personal Umbrella
- You have an income. If you earn an income from ANY source and the liability coverage on your policy isn’t enough to pay for the injury or damage expenses of others, your umbrella will cover the added costs plus it can pay for your legal bills in the event of a lawsuit.
- You own your own business. Owning a business can make you a more appealing target for a lawsuit if someone makes a claim against you. There are special policies for business protection but we recommend you also carry one for your protecting your personal assets.
- You have a home, savings, or life insurance. Again, your assets can be attached to a lawsuit to pay for damages.
- You have a young driver on your policy. Young and inexperienced drivers are more likely to have accidents. A minor child is your responsibility if they cause damage or injury and you’ll be the one to pay.
- Your Auto & Homeowners coverage doesn’t cover libel, slander, or character defamation. We know it’s not that common but as social media grows, lawsuits are growing too.
- Your home has a swimming pool or trampoline. You have greater exposure to liability especially when you have guests and visitors using your pool or trampoline.
- You own a rental property. Tenants are another exposure to you as the property owner. This liability can extend to you even if they have a renter’s policy.
- You have a dog. As much as we hate to say it being avid dog lovers, if you have a four-legged fur baby at home, even the friendliest and most loyal dogs can pose a bite risk. From neighborhood children trying to pet your baby through the fence or if someone leaves the door open and Rover escapes, you’ll bear the costs if a bite occurs.
- You own multiple cars. Let’s face it, the more automobiles you own and drive, the better your odds of having an accident in one. Especially if you own newer or luxury autos, your exposure is increased. If you commute long distances too, the risk increases.
- You like to save money! Many carriers offer discounts on your home and auto policies when you purchase personal umbrella coverage.
We saved the best for last!
Most personal umbrella policies can be purchased for less than a couple hundred bucks but can provide $1,000,000 or more in added protection!
Have questions? Call us today and see how a personal umbrella can save you money and protect your assets.
Call 402-492-8020 or visit us on the web www.uiagencies.com