Why Every Homeowner Needs a Personal Umbrella Policy

Why Every Homeowner Needs a Personal Umbrella Policy

Are you a homeowner? Have you considered the possibility of being sued for damages caused by you or your family members? You may have homeowners insurance, but it may not be enough. That’s where a personal umbrella policy comes in.

What is a Personal Umbrella Policy?

A personal umbrella policy is an extra liability insurance policy that provides coverage beyond the limits of your standard homeowners or auto insurance policies. It can help protect you from financial ruin in case of a lawsuit or judgment against you that exceeds the limits of your primary insurance policies.

Why is it important?

Lawsuits can result from many everyday occurrences such as car accidents, dog bites, or slips and falls. Even if you never expect to be sued, it’s important to be prepared. A personal umbrella policy can provide peace of mind and protect your assets.

How much coverage should you get?

You should consider getting at least $1 million in coverage, although you can get more depending on your assets and needs. Keep in mind that the cost of the policy increases with the amount of coverage you purchase.

What does it cover?

A personal umbrella policy typically covers liability claims that are not covered by your primary insurance policies, such as libel, slander, and invasion of privacy. It can also cover legal fees and damages awarded in a lawsuit.

Real-life Examples

Here are some real-life examples of when a personal umbrella policy could have saved homeowners from financial ruin:

– A homeowner’s dog bit a neighbor, causing serious injury. The neighbor sued for $1 million, but the homeowner’s insurance policy only covered up to $500,000. The homeowner was forced to use their personal assets to cover the remaining amount.
– A homeowner was involved in a car accident that resulted in multiple injuries and property damage. The injured parties sued for $2 million, but the homeowner’s auto insurance only covered up to $500,000. The homeowner’s personal assets were again at risk.

Conclusion

It’s important for every homeowner to consider a personal umbrella policy to protect themselves and their assets from the possibility of a lawsuit exceeding the limits of their standard insurance policies. With a personal umbrella policy, you can have peace of mind knowing that you’re protected, no matter what life throws your way.

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