Umbrella Insurance

Comprehensive Guide to Umbrella Insurance: Protecting Your Assets Beyond Limits

You never know when an accident or lawsuit could turn your life upside down, and you don’t have to be a millionaire to get sued like one.

Umbrella insurance acts just like an umbrella, over all your other insurance policies, giving you an extra measure of protection, should the worst happen.

What is a Personal Umbrella Policy?

Also known as Personal Catastrophe Liability (PCL). It provides extra coverage to safeguard your assets and defend against potential financial hardships from costly accidents, injuries, or lawsuits that exceed the limits of your existing policies. It covers the legal expenses for your defense up to the policy limits. It also provides the necessary support and resources to navigate legal challenges and protect your assets – whether or not you’re found guilty.

Who should consider a Umbrella Policy?

Anyone who has assets to lose!  Just read the headlines.  The courts are awarding larger amounts than ever before—many reaching millions of dollars—in liability cases involving injuries and property damage.  Everyone is at risk, especially if you fit into any of the following categories:

• Do you have assets? Anyone who is affluent or is perceived to be wealthy.
• Do you own any of the following? Swimming pool, hot tub, trampoline, rental property, boat, jet ski, motorcycle, large dog, or expensive car?
• Are you involved in youth sports or activities? Little league coach, referee, umpire,  girl or boy scout leader
• Do you have a teenage driver?
• Are you a member of? Church groups, civic organizations, or volunteer organizations
• Do you? Participate in carpools? Host dinner parties or gatherings?

What does an Umbrella Policy cover?

An umbrella policy offers extra coverage in several key areas such as bodily injury to others and property damage caused by you or a loved one. Umbrella insurance covers various incidents in addition to this list, including incidents outside the U.S.

• Expenses for legal defense in lawsuits
• Cases involving false arrest or imprisonment
• Situations related to wrongful eviction or unauthorized entry
• Violations of privacy rights
• Damages to someone else’s property
• Dog bite claims
• Your teenager can be sued for an online comment posted online
• Bodily injury to others

What is the cost of a Umbrella Policy? 

Annual umbrella insurance typically costs the same as one hour of legal defense, making it well worth the price. While the price can vary, you’ll save money if you bundle your policies all with the same company.

Not Just for the Rich, or Business Owners…

Umbrella policies are very affordable, since they would only be needed for very large accidents for lawsuits. Hopefully, you would never have to use it.

But anyone could have an accident on your property, and if there were immense physical trauma, debilitation, or death, a lawsuit or medical expenses could possibly exceed the limitations of your homeowners policy.  The same can be said for your auto policy, if the worst were to happen. How could you afford an extra million dollars of a jury award that is beyond your policy limits? It could devastate you financially.

From $1 – $5 million in additional umbrella coverage could save you from financial disaster. It is inexpensive protection for your family. 

 

 

Imagine this scenario to see how Umbrella Liabilty Insurance can be useful…

Your spouse accidentally runs a red light and T-bones another car. There is substantial damage to the vehicle, and several people are injured. The vehicle needs $25,000 in repairs and treatment of the injured totals $275,000. Also, the driver of the car your spouse hit is a plumber who won’t be able to work for months due to a broken wrist and leg. He is suing you for $200,000 in lost earnings.

Now you are looking at a total of $500,000. If you carry only $300,000 in liability coverage with your car insurance, the remaining $200,000 will have to come out of your pocket.

If you had umbrella insurance, it would pay the difference between what your primary insurance covers and what you still owe. An umbrella policy could also cover your legal costs in the lawsuit. A one-million-dollar policy can cost less for an entire year than the average hourly rate of a decent lawyer.

When it comes to protecting yourself from financial loss in the case of a catastrophic event, Gerety Insurance is your partner for protection. With a focus on trusted, local services, we offer personal attention and a reliable partnership for safeguarding your life, loved ones, or business.You can request a quote today and find a reliable partner for your protection.