PERSONAL UMBRELLA INSURANCE: A small price to pay for the extra piece of mind.
the low-cost way to get significant extra liability coverage
Do I need an Personal Umbrella Policy?
Some say there is a fear factor involved with making the decision as to whether or not you should buy a Personal Umbrella Policy. Especially when you hear about the number of lawsuits that happen today.
The general rule is to ask yourself:
Is the value of my total assets greater than the liability limits on my auto and homeowners policy? Total assets include: checking, savings, retirement, college savings, equity in your home and your investments.
Am I at risk for being sued?
Does my lifestyle put me at greater risk?
Risk exposure circumstances:
Teenage driver in the family
Owning a home with a swimming pool or trampoline
Owning a dog
Hosting large parties
Owning rental party
Adolescents in the home
Employing household staff
Being a well known public figure
Examples of situations where an umbrella policy would "save the day".
-Your dog runs out of the house and viciously attacks a neighbor who was going for a walk. Your neighbor sues you to cover her medical bills, lost wages, and pain and suffering.
-Your daughter gets into a fight at school and punches another girl, breaking her nose. The girl’s parents sue you.
-You cause a 10-car accident and your auto insurance property damage coverage isn’t high enough to replace all 10 accident victims' vehicles. Nor is your personal liability coverage high enough to pay for their medical bills.
-You send sandwiches to your son’s school for a field trip lunch. Several students develop food poisoning and their parents sue you.
-Your teenager throws a party at your house while you’re out of town. Someone brings alcohol to the party, and one of the guests is arrested for driving under the influence on the way home. You are sued.
Even the most cautious, well intentioned person could get caught in an unfortunate situation. If something were to happen where monetary damages exceeded the limits of your auto or homeowners insurance policy, you could have to pay out of pocket. This would have to come from your other assets.
Personal Umbrella Policy: a small price to pay for extra peace of mind.