PERSONAL UMBRELLA LIABILITY BASICS

It’s an unfortunate fact that accidents happen, and it’s not uncommon for jury awards and out-of-court settlements to run into the millions. While it’s difficult to pinpoint the monetary consequences of the risks you and your family take each day, are you certain your current liability insurance offers you enough protection? For example, what if:

  • Your teenager runs a stop sign, causing a serious accident?
  • A deliveryman falls on your sidewalk and is seriously injured?
  • A babysitter is injured by your otherwise friendly dog?

If you’re found to be legally responsible for injuring someone or damaging their property, without a personal umbrella liability insurance, anything beyond the limits of your standard liability insurance policy will come out of your own pocket. Standard liability insurance generally includes homeowners, renters, auto, and watercraft policies.

Like an umbrella that protects you from the rain, a personal umbrella policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is exhausted.

Contrary to popular belief, umbrella policies are not just for the wealthy. EVERYONE should consider carrying an umbrella policy. If you engage in a high-risk activity or hobby that increases your odds of getting sued (owning a swimming pool, entertaining frequently), it is wise to give serious consideration to this valuable coverage.