You leave your house on a beautiful sunny clear day, but later on you find yourself standing in a rain storm without an umbrella. Wouldn’t you have preferred to have extra coverage so you didn’t get wet? That scenario sums up what an umbrella policy is for those of you who have never heard of it before, it protects you from major claims and lawsuits and also helps protect your assets and future. Umbrella policies give you the extra coverage you need when a storm comes your way.
Only about 10 percent of those insured carry umbrella policies, but according to experts many more should. Here is how the extra coverage works, if someone on your property has a serious injury or you yourself cause a serious injury, you can get sued. If your insurance isn’t adequate, a personal insurance attorney can go after your income or assets. In events like these, an umbrella policy would cover what your home or auto policy may not. For example, Ed Charlebois, vice president at Travelers Personal Insurance “had one claim because a teen skier hit another skier, so the victim’s family sued, their homeowners insurance kicked in, but the victim’s medical bills were $500,000 and the homeowners policy only covered $300,000.” In a case like this, the umbrella policy would kick in to cover the remaining $200,000. In the event of a serious accident where lawsuits can occur, having an umbrella policy can save you from losing your home or income.
Umbrella policies typically add $1 million to $2 million above your home and auto coverage. Most people assume that only a wealthy person needs an umbrella policy because they have more assets to protect, but that assumption is not always correct. Any person can get into a serious car wreck and be sued. Nobody, either rich or poor, is safe from these types of scenarios. You can be sued for more than what is in your bank account, so it is always good to be prepared in the event of a lawsuit.
So you don’t want to get caught in the rain with no protection? If so, our independent insurance agents at Buttrey-Wulff-Mamminga Agency can help guide you in whether or not an umbrella policy is right for your own unique situation. An umbrella policy can give the insured peace of mind knowing they have extra coverage if they should need it, especially since the forecast isn’t always sunny.