A personal umbrella policy protects you and your family from unexpected and potentially devastating liability claims. Lawsuits are commonplace in today’s culture if you are found at fault for a serious car accident, an injury on your property, or you state your personal opinions online which may affect someone else in a negative way. The umbrella policy will kick in once the liability limits on your home, auto, landlord or recreational vehicle insurance policy are exhausted. For example, let’s say you’re involved in a serious car accident and you get sued for $650,000. If your auto insurance policy has a limit of $250,000, you could be responsible for $400,000 out of your own pocket. A personal umbrella policy can help cover this gap in protection.
Here’s another example: Your dog gets excited when an elderly visitor arrives. She greets your visitor by jumping on them, they fall down and break a hip. Now your guest needs surgery and rehab resulting in expenses of over $750,000. Since your homeowner’s policy covers the basic limit of $300,000, you are responsible for $450,000.
Below are a few more examples where an umbrella policy can help:
- You accidentally injure a swimmer while boating.
- Your teen driver is texting while driving and accidentally hits a pedestrian.
- A family member posts a negative online review that results in an alleged defamation lawsuit.
- A guest has an accident on your property that requires surgery.
Umbrella policies are typically available in limits of $1 million to $5 million. The policy can cover a wide range of losses such as medial costs, loss of income and funeral expenses for others involved in an accident, to invasion of privacy, libel, and slander, to bodily injury of a tenant who resides in your rental property.
Of course, like any insurance policy, umbrella policies come with exclusions. Losses related to business, your personal property, intentional or criminal acts or any written or oral contracts are typically excluded from most umbrella policies.
The experts at The Amy Alward Insurance Agency can help you choose the right coverage levels for you and your family. Please feel free to contact us for more information at 207-767-3334.