Personal umbrella liability basics
Accidents happen—and it’s not uncommon for jury awards and out-of court settlements to run into the millions of dollars. While it’s difficult to pinpoint the monetary consequences of the risks you and your family take each day, are you certain your current liability insurance offers you enough protection?
For example, consider the following:
- Your teenager runs a stop sign, causing a serious accident.
- A deliveryman falls on your sidewalk and is seriously injured.
- A babysitter is injured by your otherwise friendly dog.
Do I need an umbrella policy?
If you are found to be legally responsible for injuring someone or damaging their property, without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket.
Like an umbrella that protects you from the rain, a personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is exhausted.
How much coverage do you need?
You’ll want to consider not only your total personal assets but also your potential personal risks.
For example, do you operate a business in your home and have employees and clients at your home on a regular basis? Does your profession or the location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you.