Do you need a personal umbrella policy?
The majority of us buy insurance for our essential assets. Most common is our homeowners, renters and auto insurance. Many of us that are insured spend hundreds if not thousands of dollars a year protecting our possessions that we have all worked so hard for. With that being said, are we really doing all we can to protect ourselves? Is there another way to safeguard our families from a catastrophe?
The answer to that is yes. A personal umbrella policy provides excess liability limits to all personal assets such as autos, recreational vehicles, homes and rental properties. Personal umbrella policies are sold in million dollar increments from one million to five or ten million.
Now the question is how do you determine whether or not you need a personal umbrella policy? If you answer yes to any of the following questions you are at a much higher suing risk and should consider whether or not the advantages of an umbrella policy is right for you.
1. Do you have a youthful driver in your household?
-14% of all deaths in motor vehicle accidents are from teen drivers. What if your teenage daughter or son was involved in a car accident and seriously injured if not killed another driver? What if they injured or killed the driver and his or her passengers? That would be separate paid damages to each person. What if the person seriously injured or killed was a surgeon or any other professional considered very valuable in their company? If the other person was killed or paralyzed who will pay for medical bills and lost wages? You as the legal guardian will. Now think of whether or not your current insurance policy pays hundreds of thousands if not millions in this case?
2. Do you own a swimming pool?
-Depending on which state you live in, the law says that you are responsible for anyone that comes onto your property whether they are invited or uninvited. For example, if you are at work or out of town and someone trespasses onto your property and drowns in your pool the family of those that trespassed can sue you. On a hot summer day people especially young children are eager to jump into a pool. What’s to say that pool won’t be yours?
3. Do you own a personal watercraft?
-Like an automobile, teenagers are also very dangerous on personal watercrafts. 40% of injuries that occur on personal watercrafts are caused by teenagers 19 years old or younger. The same dangers apply to watercrafts just as they do with automobiles in regards to teenagers.
There are several risk factors besides these to consider. Accidents that involve deaths and multiple injuries can run in hundreds of thousands and in some cases millions. If you are not adequately protected you will have to pay the difference out of pocket. If you don’t have hundreds of thousands if not millions available at your disposal, how will the lawsuit be paid? Will you be forced to sell the home your children grew up in? Will your wages be garnish or will all of your assets be liquidated to pay for the lawsuit? Your current insurance policy will only cover up to a specified amount listed in the policy, anything excess if out of pocket.
Personal umbrella insurance is fairly inexpensive and worth every penny considering the broad coverage and peace of mind knowing everything you have worked hard for will not be taken away from you in lawsuits, garnishment of wages or liquidation of your assets.
Most insurance companies require increasing your current liability limits to a specified amount before issuing your umbrella policy. Evaluate your suing risk and contact your insurance professional to get yourself a personal umbrella policy. After all, there is no insurance policy to prevent accidents but the assurance of an umbrella policy does insure your peace of mind.