Umbrella Insurance: Protect yourself from big claims

Every day attorneys are penetrating our market with liability lawsuits.

Why not add umbrella coverage on top of your auto insurance and home insurance? Here is a perfect example that I have seen recently of why you should supplement your existing liability coverage:

The parents of a teenager gave him a car for his 17th birthday. The parents had an auto policy with a $500,000 per claim liability limit and an Umbrella policy with a one million dollar liability limit. One day, their son crossed over a median and collided head on with another vehicle. Two passengers in the other car were killed, and a third was seriously injured. The 17 year old driver was found negligent and ordered to pay $1.5 million to settle the injury claims.

Fortunately, the parents carried an Umbrella policy. The auto policy paid $500,000, and the Umbrella paid out the 1 million. A personal Umbrella policy offers additional coverage once the limits under your primary policy are used up. Your assets as well as your future earnings are protected.

In a world of frivolous lawsuits having an Umbrella Policy in place just plain makes sense… or cents.

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