Personal Umbrella Insurance
Are you concerned about the safety of your assets? Are you in a position that puts you at risk for liability lawsuits? If so, personal umbrella insurance is worth considering. This policy gives you liability coverage in addition to what’s offered by your homeowner’s insurance or auto insurance.
You must already have some type of liability coverage before you can purchase personal umbrella insurance. That’s because this policy isn’t a standalone policy. It works with liability that you have on your auto insurance or homeowner’s insurance. You can’t have personal umbrella insurance unless you already have liability on another policies.
You have to decide if this type of policy is a match for your needs. For example, say you’re facing a $200,000 liability lawsuit because of a car accident. Your car insurance has $50,000 worth of liability coverage. What happens if the court-orders you to pay $100,000 in damages? You’ll have to pay the remaining $50,000 out of pocket. But if you have personal liability coverage, the policy will help pay the damages.
The biggest personal umbrella insurance benefit is that it shields your assets. If you have enough coverage, you won’t have to lose any of your assets to pay damages. And it helps to have financial help for legal fees.