Should you be at fault for an accident and there is severe injury or even death as a result, the one hurt or killed (or the family) can file litigation against you, which, of course, can end up being a very significant amount of money for which you are held to account. If you do not at least have decent liability insurance coverage, you could be in great danger of losing everything if a lawsuit is taken out against you. Other risks we might face include a swimming pool in the backyard where someone gains access and is injured or even drowned. Maybe you have a retaining wall that falls over on a pedestrian. The list is endless and this is why you may be well-served by an umbrella insurance policy to protect both you and your family’s financial status.
An umbrella policy is there to cover your liability, even the legal fees should you need representation, if your normal liability insurance is not enough. This kind of coverage works beyond typical property damage and personal injury expenses, including costs incurred for any civil action and court fees, all of which can accrue and become hugely significant in no time.
A normal insurance policy does not cover a civil lawsuit against you- legal costs, court costs, and the settlement total all are excluded. Without umbrella coverage, you could very well be left with nothing; even your property could be lost to cover your costs. If you’ve worked over the years to accrue an investment portfolio, whether it consists of real estate, stocks, or even a single family home, all can be at risk without a proper umbrella insurance policy.
Umbrella coverage comes in a range of coverage amounts. Typically, it is sold in amounts of $500,000 to $1 million, and up to $10 million in coverage. This policy is what takes care of amounts that exceed your normal liability coverage and can rescue one from financial ruin. The amount of coverage that best suits you is determined by taking into account your assets and needs, as well as the kind of budget you have to comfortably pay for your premiums.
Supplemental liability insurance can allow you the financial cover from those who would file a civil lawsuit against you. Even such things as libel and slander can be covered, which can also mean big financial charges in legal fees, court costs, and, of course, the potential amount of a settlement. Protect your hard-won financial assets and the future of your family’s financial status by buying an umbrella insurance policy. A little bit paid now can reap you huge benefits as life goes on.