Determine the amount of insurance you need and what type can be a daunting prospect. If you have already purchased home insurance, you may have been asked if you want an umbrella policy as part of your insurance coverage. In order to get the best coverage possible and to protect yourself from any unforeseen circumstances that may not be covered by a normal policy, it may be necessary to add additional liability insurance in the form of an umbrella insurance policy to your auto and home insurance. policies to protect you and your family.
Here's why.
Protection from prosecution
Kiplinger recommends that you have at least a $ 1 million master contract to provide liability coverage that goes beyond your auto and home insurance policies, even if you have less than $ 1 million assets. If someone sues you and you don't have this general policy, you may be responsible for paying legal fees for current and future assets. Even if you end up winning the lawsuit, legal fees will eat into the settlement as they add up so quickly. It is wise to get liability insurance limits that total as much as your equity - more if you can afford it. This additional lawsuit coverage will cover defense costs as well as liability coverage for lawsuits not covered by your auto or home insurance. In a broader sense, general policies provide coverage beyond your normal coverage, providing:
· Liability for material damage
· Slander / defamation
· Liability for personal injury
· Legal and defense costs
We never know...
It is impossible to say if, when and who will hurt you in the future, whether by a car accident or some other scenario. Think of this possible example: you hurt a professional athlete, a CEO, or a doctor. Maybe they can't work for 10 years due to their injuries. You would be responsible for paying their lost wages, medical expenses, and compensation for pain and suffering, with loss of wages starting at $ 3 million from there, says Bankrate. It is better to buy an umbrella policy now, with at least $ 1 million in coverage, than to leave the bag later. If and when something happens and you don't have a policy, it's too late to add one.
Peace of mind
If you are concerned about losing income and assets due to a possible lawsuit, you need a general policy. Considered a wise purchase in the insurance industry, it's one of those things that isn't very exciting to buy initially as a new car or vacation, but it gives you immeasurable peace of mind knowing if you had to use it, it's there and it will protect you. Plan to pay between $ 150 and $ 200 for the first million dollars in coverage, then around $ 100 for every million dollars you add. Want to know more about umbrella insurance policies? Contact us today to speak with a representative and find out how it can benefit you!
