How An Umbrella Policy Can Protect You

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How An Umbrella Policy Can Protect You

In the event that someone is injured on your property and you are found legally responsible, you could be faced with a costly financial burden. In fact, without a personal umbrella liability insurance policy, any expenses beyond the limits of your standard policy are your responsibility.

This applies to your homeowners, renters, automobile and watercraft insurance policies.

“An umbrella policy can also protect you in the event of a serious accident, such as the recent 131-car pileup on a Wisconsin interstate that resulted in 71 injuries,” said Nick Arnoldy, owner/broker at Marshfield Insurance. “Assuming each vehicle involved in the pileup was worth an average of $20,000, that alone can result in more than $2.6 million in liability for whomever caused that crash. That’s not including any medical expenses that might be involved.”

Arnoldy added that with cameras on every mile marker of the interstate, it is easier to determine who’s vehicle initiated the pileup, and that driver will hopefully have an umbrella policy to protect them.

Personal umbrella liability insurance provides an extra layer of protection over your personal assets for when your standard liability coverage is exhausted.

Engaging in everyday activities can put you at risk for a lawsuit. Simple things like having a swimming pool or entertaining guests in your home can increase the chance that someone will get injured and file a lawsuit against you. To minimize your risk, consider a personal umbrella liability policy.

A personal umbrella liability policy works to fill the gaps in your coverage and provides the following benefits:

  • When litigation ensues, it’s typically for a large amount. If you get into a car accident and injure several people, you could be sued for millions of dollars; well beyond the limits of your automobile policy. You can also be held responsible if your dog bites someone, if your child injures another kid in a fight at school, or if a handyman hurts himself at your home.  Personal umbrella policies can also be endorsed to protect against slander and libel accusations which is a growing concern with social media.
  • Umbrella policies cover legal fees as the insurance company assumes the risk, not you.
  • Coverage is inexpensive and easy to obtain. Just give us a call to add it on to your current policy.
  • You’ll have peace of mind knowing that you are covered in case of a fluke occurrence.

Take into consideration your total personal assets and your potential for personal risks when determining how much coverage you need. A wide range of factors, such as whether you have hired help, if you have teen drivers at home or if you operate your business out of your home, will determine how much coverage is appropriate for your circumstances.

A $1 million limit is typical and higher limits are available.  Costs typically start at $150 annual and increase depending on other personal exposures. 

Contact us today to determine how much coverage is right for you.

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