Additional liability coverage is important

Would I be covered under my homeowner’s policy if I am sued by someone who was seriously injured on my property?

Your homeowner’s policy will protect you, but only up to the liability limits of your policy and what the injury involved.  In today’s lawsuit-oriented society, your homeowners policy may not provide adequate liability coverage in the event that you are involved in a significant lawsuit.

What about my automobile policy?

Similarly, your automobile policy provides coverage in the event of a vehicle-related lawsuit, up to the limits of the policy.

What would happen if I was held liable for a settlement that exceeded the limits of my insurance coverage?

You would be held personally responsible for paying any portion of the settlement that your insurance company did not pay. Your present assets as well as future earnings could be taken away to pay for the settlement.

Do I need an umbrella policy?

Umbrella policies are inexpensive, and they provide broad coverage.

An umbrella policy- also known as a catastrophe or excess liability policy- provides liability coverage that becomes effective when your underlying coverage limits  (provided by your automobile, homeowners, boat or recreational vehicle policy) are exceeded.  These policies provide broad coverage and include protection against certain losses not covered by your other insurance policies.

Umbrella policies are a good investment- an investment in your present and future financial security.

If you are weighing the pros and cons to decide- look around your home at everything you have amassed and ask yourself, how would you feel if you had to sell them in order to pay off the settlement that exceed your insurance?  The lower your insurance liability limits the greater chance this could all happen..  The price for protection is more affordable than you think.

Call us for further information on purchasing an umbrella policy.