Umbrella & Excess Liability Coverage
Homeowners, auto, and
watercraft policies have a limit on liability insurance. If an unfortunate
accident should happen that is your fault, do you have enough liability
insurance from your current policies to cover your costs for negligence?
Since no one can predict how much a judge may award the injured person,
umbrella insurance is not just for the wealthy anymore, but a needed
protection for every policyholder.
is designed to give one added liability protection above and beyond
the limits on homeowners, auto, and watercraft personal insurance policies.
With an umbrella policy, depending on the insurance company, one can
add an additional 1-5 million in liability protection.
This protection is designed
to “kick-in” when the liability on other current policies
has been exhausted.
is the portion of a homeowners or auto policy that pays for expenses
such as the injured persons medical bills, rehabilitative therapy,
and lost wages due to the negligence of the at fault person. The liability
portion of an insurance policy also covers a legal defense representative
if the negligence would happen to land the at fault person in the court
room. After adding up all of the medical expenses for the injured and
the legal fees of the negligent person, the standard liability in one’s
homeowners or auto policy is often not enough. Almost every state has
financial responsibility laws that will hold drivers accountable for
bodily injury and property damage resulting from car accidents and
the at fault driver could be sued for the damage. Personal assets from
the at fault driver could be seized resulting from a lawsuit. Similar
laws are also in force for home and watercraft owners.
There is good news.
A personal liability umbrella insurance policy can give one added liability
protection without a large added cost. Additional liability insurance
is often inexpensive, especially compared to the added coverage one
gains. Furthermore, liability insurance covers one’s non-business
activities anywhere in the world. Having the added protection of a
liability umbrella policy is coverage no one should go without.