Have you ever talked with someone who experienced a serious auto claim? Certainly, their story of the accident would have details about how scared they felt, the pain they may have endured from an injury or the anxiety over a potential lawsuit.
Consider the following real-life example where having an umbrella liability policy was incredibly helpful. A 16-year-old driver caused an accident while driving to school. It was a rainy morning and he hit another vehicle when driving through an intersection. The other driver had significant injuries. At 16 years old, this driver was served a $2 million lawsuit. As he tells it, his parents took a deep breath and told him not to worry; this was why they had an umbrella liability policy.
When considering an umbrella policy, it’s important for you to know that:
- You (or your dependent child) can be sued for amounts over what you’re covered.
- Without an umbrella policy, assets like your home, savings, future earnings or inheritances are not protected if you lose a lawsuit over a car accident or an accident on your property.
- If you lost such a lawsuit, you’d likely have to pay for costs like the injured person’s medical expenses and lost wages, which can quickly add up.
It’s also important to know that without the additional liability coverage of an umbrella policy, if your dependent child is sued and found to be at fault, they could have to pay the judgment when they come of age and start to earn money — their wages could be garnished.
All of these reasons are important reminders that you don’t have to be wealthy to need an umbrella policy.
An umbrella liability policy can help ease stress and anxiety after a loss. If a lawsuit is filed, an umbrella policy provides liability limits of at least $1 million over your auto policy liability limit. In today’s society, verdicts are increasing almost daily, and this increased limit provides an added layer of liability protection for your assets.
While the majority of claims for an umbrella liability policy result from auto accidents, there are other situations where an umbrella policy may be valuable. Additional examples include claims related to ATV and boat ownership, personal liability with social media use, young drivers, etc.
Ready to learn more about an umbrella liability policy? Connect with our Personal Lines team today at 877-381-3570.