It’s impossible to detail every situation for which you may need personal umbrella insurance – sometimes also called personal liability or excess liability insurance – but, you don’t want to wait until that situation arises before you are forced to understand what it is. So, what is personal umbrella insurance and do you need it?

Personal umbrella insurance is additional insurance that you use when your primary insurance doesn’t cover the costs. Consider an example: You hit someone in your car and they sue you and win the case. The settlement is for $500,000, but your insurance only covers $300,000. Where is the rest of the money going to come from? Well, the money could come from the seizure of your assets and home, a garnishment to your salary or from personal umbrella (liability) insurance. No doubt, most people would rather the extra $200,000 come from an insurance company than from them.

Everyone is at risk for being sued and anyone with ANY assets should seriously consider buying personal umbrella insurance. In other words, if you are a policy holder for anything, you should think about getting it. If you own a business, home or if you drive a car, you could be sued – today’s awards are significantly higher than they used to be. At one point, this type of insurance was only for the rich and powerful, but now this type of insurance insurance is affordable to anyone who wishes to purchase it.

We live in a litigious society – especially in the United States – whether it be car accidents that happen every day, trips and falls on your property, or even something like a dog bite injury, you CAN quickly be on the wrong end of a lawsuit. Right or wrong, it happens every day and if it happens to you, you can be left in financial ruin. Personal umbrella insurance can give you the peace of mind that no matter what happens, you will be protected and very likely avoid losing the assets you’ve worked hard to accumulate as a result of a lawsuit.

Personal umbrella insurance isn’t mandatory, but it is an affordable option that allows you to prepare for unforeseen circumstances – contact us for more information about this important protection or with other questions about your personal insurance.