Depending on your stage in life, you probably have auto, home, health and life insurance to guard against life’s unseen pitfalls. Another policy worth considering is personal umbrella insurance, which provides extra liability coverage.
If you’re at fault in a serious car accident, for example, auto insurance policies typically cover $250,000 in damages. What happens if the damages–including potential lawsuits–exceed that amount? If you’re near retirement age and have accumulated significant assets, you could be in danger of losing that nest egg.
Here are a few of the things covered by most personal umbrella policies:
1. Damage to Property
Personal umbrella insurance can cover property damage that goes beyond, or is not covered by, your current home and auto policies. This could include a family member having an auto or boating accident that damages property like fencing, docks or other homes. It can also cover accidental damage you might inflict on another person’s valuables.
2. Bodily injury
In the same way it covers property damage, personal umbrella insurance covers medical bills you’re liable for that exceeds your other policies. If your dog bites someone or another person’s pet, it also covers those bills.
3. Lawsuits
If legal action follows a serious car accident, a lawsuit might follow, especially if the incident resulted in significant wage loss for the victim. Personal umbrella policies cover legal and settlement expenses.
Keep in mind that personal umbrella insurance doesn’t cover some things, like your personal property, contracts or criminal acts.
Most personal umbrella insurance policies provide $1 million to $5 million in liability coverage. If you’re interested in hearing how such a policy could work with your current policy portfolio, give us a call at: 703-754-4300. We’d be happy to answer any of your questions.