“Magnolia tree” – that beautiful old tree with large white flowers that makes you smile in the spring – that is until it falls on your neighbor’s house.
Do you ever wonder what happens when your auto liability or homeowner’s liability isn’t enough? Whether someone slips and falls on your property, a natural disaster strikes, or some other unexpected turn of events happens – DON’T be caught unprepared and saying, “But I thought my homeowner’s policy covered that.” Make sure you are covered with personal liability insurance.
Personal umbrella insurance provides coverage beyond your homeowner’s or auto policy by adding an extra layer of liability coverage. Coverage is provided in amounts of $1,000,000 increments.
Knowledge vs. Folklore
- It’s just for the rich.
- It’s too expensive.
- It’s too complicated to add to my existing homeowner’s and auto policies.
Traditionally, only the wealthy needed this extra layer of liability protection, but with the increasing number of lawsuits, purchasing extended (umbrella) insurance coverage may be a good idea if you fall under certain “high risk factors.” These factors may include having a young driver in the family, owning watercraft, owning a swimming pool, or owning a recreational vehicle. Although you have auto and homeowner’s liability coverage, if you get sued above and beyond what your policy covers, you are responsible for paying the rest.
For example, your auto policy has $300,000 liability coverage for collision, but you are sued for $800,000. The policy pays out the $300,000, but everything you own is now at risk of being leveraged to cover the remaining debt. Make sure you are COVERED!
Who needs a personal umbrella policy?
Several factors need to be considered when deciding on a personal umbrella policy:
- How much you own is irrelevant when deciding how much to purchase.
- Do you live in a wealthy town, where you could be an easy target for a big settlement?
- Do you travel a lot?
- Do you entertain a lot?
- Do you operate a home-based business and have employees or clients coming to your home on a regular basis? (Many self-employed people wrongly assume that this is covered in their homeowner’s policy.)
If you answered yes to any of these questions, it is particularly important for you to have umbrella liability insurance. (See The Basics: Umbrella policies plug holes in your coverage, Ginger Applegarth, MSN Money.)
Our team of qualified agents can help you determine if you should consider personal umbrella insurance. Robertson’s experience and reputation of industry excellence affords us a wider range of insurance carriers to work with, providing you with more choices and better budget options.
It’s simple, fast, and absolutely free! Call to speak to an agent at 610-866-2400 or fill out the Get A Quote form today with no obligation. Or stop in at one of our three convenient locations in the Lehigh Valley.
- Protect ALL your personal items. Go to our Homeowner’s Inventory Form
- For tips on creating a safe home, go to our Resource Center
We strive to rise above the norm to find solutions that are tailored to your specific needs and deliver an experience of trust, knowledge, and reliability. It’s simple, fast, and absolutely free!
