The concept of Umbrella Liability is to provide coverage above your other primary liability insurance. If you have auto insurance and you have a serious at-fault accident, you will be sued for negligence. Your auto insurance should step in to defend you and pay judgments up to their limit of liability.
However, what if the judgment is higher than your auto insurance limit? Most auto policies cover injuries for one person up to $100,000. It doesn’t take too much time in a hospital to rack up more than $100,000 in medical bills. There are also lost wages and pain and suffering issues. If a jury awards $200,000 to the injured party, who will pay after the auto insurer pays their $100,000 limit? You guessed it… you will!
Personal Umbrellas cover bad car accidents as well as negligence in the home.
A Personal Umbrella provides coverage over the top of the auto policy as well as the homeowner and any other personal exposures you may have. (Like boats, rental dwellings, second homes, etc.) It is written in increments of $1,000,000 and can go as high as $25,000,000 for most companies. In the above accident, if you have a Personal Umbrella, it would pay the extra $100,000 so you wouldn’t have to.
A Personal Umbrella is reasonably priced. Premiums start around $150 annually for $1,000,000. Call us for a quote.