If you have significant assets or risk exposures, you need an umbrella policy to cover them. An umbrella policy provides liability coverage above the limit of underlying policies such as your auto, home, boat, or recreational vehicle policy. Carrying an umbrella policy can also reduce the cost of your auto and homeowners insurance.
Consider this scenario:
Your local handyman comes over to do some painting. What you don’t know is that he has no insurance. When he falls from his ladder and is severely injured, will your homeowner’s policy provide enough liability coverage to stay protected?
The bodily injury damages alone could be devastating, but did you know that the cost for the insurance company to defend you in a lawsuit comes out of your liability limit? Your liability coverage could be wiped out before the case even goes to trial.
Then where does the rest of the money come from?
Court judgments have been known to liquidate personal assets and garnish future wages.
In today’s litigious society, the standard limits on your auto policy just don’t cut it. Umbrella policies provide “sleep at night” coverage so that you don’t risk losing the things you’ve worked hard to obtain. They also cost less than you might think.
Not sure if you need it? Not sure how much?