Personal Umbrella Policies Are Not Just for the Wealthy
Personal umbrella policies protect you against covered losses that exceed the amount of liability limits you have on your personal policies. No one can afford to have their wages garnished for life. An umbrella policy can be there to prevent such a thing from happening to you.
Auto Insurance: Your teen driver was texting while driving and caused a three-car crash. Two of the vehicles are totaled and their combined cash value is $135,000. You have a property damage limit of $100,000 on your personal auto policy. How will you pay for the additional $35,000 in property damage to those vehicles? A personal umbrella policy would respond to the additional amount not covered by your auto policy up to its policy limit.
Homeowners Insurance: You just installed a new pool. Despite your six-foot privacy fence and locked gate, a few neighborhood children go for a swim and drown. The parents sue you for $1,000,000. Your homeowner personal liability limit is $300,000. How will you come up with the $700,000? A personal umbrella policy would respond to this up to its policy limit.
Boat Insurance: You have just injured a water skier while boating. The skier’s injuries land him in the hospital for a substantial amount of time costing $700,000 in bodily injury. Your boat policy covers bodily injury for up to $300,000. Where are you going to find an additional $400,000 to pay for those injuries? A personal umbrella policy would respond to this up to its policy limit.
ATV Insurance: You just bought a new ATV last week. Your son’s friend visits your home and they take the ATV out for a ride. Your son hits a bump throwing his friend off the back of the ATV and sustains a head injury. You bought insurance for the ATV, however, your liability limit is $100,000. The medical expenses total $750,000. How will you come up with $650,000? A personal umbrella policy would respond to this up to its policy limit.
Personal Injury: You post a rumor you heard about your neighbor on Facebook. The neighbor finds out and sues you for defamation of character and wins $500,000. Your homeowner policy limit is $300,000. Where will you find an extra $200,000? A personal umbrella policy would respond to this up to its policy limit.