Personal Umbrella Policies
Why You Need Umbrella InsuranceLawsuits are very common today. Attorneys are winning their clients larger sums of money than ever before. Sometimes a normal liability policy does not have a large enough limit to cover the awarded damages of a lawsuit. If you are sued and you lack umbrella insurance you may need to pay the additional money out of your own pocket.
No one can predict how much money a judge can award in a settlement, so umbrella insurance is a wise investment. Umbrella insurance can protect you if your homeowners, auto or water policies are insufficient to cover a settlement against you. With an umbrella insurance policy you can add an extra one to five million dollars of coverage to your existing policy or policies.
Liability insurance is the part of a homeowners or auto policy that takes care of expenses incurred from an accident or negligent act. These expenses can include an injured individual's medical costs, legal fees and lost wages caused by the injured person's inability to work. In the modern legal system many judges sympathize with the plight of injured people and award them large sums of money. Without an umbrella insurance policy your liability insurance may not be enough to cover such an award.
Almost every state's law specifies who has financial responsibility when a car accident occurs. The driver at fault must pay for property damage and medical expenses resulting from his or her negligence, and the matter may go to court. If a driver loses a lawsuit their personal assets may be seized to compensate the other party if they do not have umbrella insurance in place. The laws and potential consequences are similar when an accident occurs on one's property or involving one's watercraft.
You can add umbrella insurance to your existing policy for a small additional premium. The cost of this insurance is slight compared to the protection it adds. With umbrella insurance you enjoy the same degree of additional protection for all non-business activities anywhere in the world. Even if you are not wealthy umbrella insurance will protect you from the costs of large settlements against you. Everyone who wishes to protect their assets needs umbrella insurance.