Personal umbrella policies are liability policies that go above and beyond your primary home and auto insurance coverage. Umbrella policies can also fill the gaps for other incidents not covered on underlying policies, such as slander or libel. If you are sued, even if the lawsuit is frivolous, an umbrella policy can also provide defense costs and lawyers fees for you. We have put together several reasons why you should carry an umbrella policy.
1) You Own a Dog
Dog bite claims are exceedingly common and, on average, a claim is nearly $36,000. Regardless of the breed of your dog, umbrella policies can provide an extra cushion for you to avoid paying claims like this out of pocket.
2) You Drive a Car
Medical costs can exceed $100,000 per person in a severe auto accident. If more people are in the car, those costs can easily exceed your auto insurance coverage. With the rise in distracted driving and higher cost of car repairs, these claims could become your responsibility, if you do not carry an umbrella policy. Additionally, if you have inexperienced teen drivers on your auto insurance policy, it is even more important to consider adding an umbrella to your insurance coverage.
3) You Have a Swimming Pool or Trampoline
Swimming pools and trampolines are one of the more significant risks that a homeowner can face for lawsuits and accidents at home. If a neighbor’s child wanders on your property and accidentally drowns in your pool or breaks their leg falling off of your trampoline, the resulting lawsuit could easily exceed the standard liability limits on a homeowner’s policy of $300,000. That means you could be paying out of pocket for anything above that amount, without an umbrella policy.
4) Defense Costs
Umbrella policies provide defense costs, even if the lawsuit is unfounded and frivolous. If you do not carry an umbrella, you could be on the hook for finding and paying for a lawyer on your own.
Umbrella policies can provide peace of mind for you and your family. If you are interested in an umbrella policy or have questions about your coverage, simply email us.