INDUSTRY INSIGHT
Insurance
SPONSORED CONTENT
When It Rains,
It Pours:
Why You Need a Personal
Umbrella Policy
I
n recent years, our society has become what some people call “lawsuit
happy.” In other words, an increasing number of people are filing
lawsuits for everything from emotional injury to property damage
– and they’re suing for larger amounts than ever before. If someone
were to file a lawsuit against you, you could end up losing hundreds of
thousands of dollars or more, even if you won.
While you may have some personal liability coverage through your
homeowners or auto insurance policy, it’s probably not nearly enough to
cover a major lawsuit. Fortunately, you can further protect yourself with
what’s known as an umbrella policy. This type of policy offers a higher
level of liability coverage and ensures that you and your family will be
protected if someone sues you for damages.
Umbrella policies: A liability coverage “extension”
When it comes to lawsuits, the more assets you own, the more you
stand to lose. A personal umbrella liability policy can protect you from
these potentially devastating losses. These policies act as an extension
to the current liability protection you probably have through your
homeowners or auto insurance policy.
Umbrella policies are typically sold in million-dollar increments, and
you can obtain a policy once your home and auto insurance policies
meet a minimum “attachment point” – typically a liability limit of
$300,000 or $500,000.
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What does it cover?
Most umbrella policies covers the following:
Personal injury, in