In today’s environment lawsuits are everywhere and courts are awarding larger amounts of money than ever. Homeowners, auto, and watercraft policies all have a limit on liability coverage and if an unfortunate accident should happen that is your fault, you must ask yourself “Do you have enough liability insurance to cover this accident”?? Since no one can predict how much a judge may award an injured person the umbrella insurance policy has become a necessary coverage for anyone with assets to protect.
With an umbrella policy you can add an additional 1-5 million in liability protection that is designed to “kick-in” when the liability on your homeowners, auto, and watercraft policies has been exhausted. Liability insurance is the portion of your homeowners or auto policy that pays injured person’s medical bills, lost wages, pain & suffering and your legal defense to represent you in court.
After adding up all of the medical expenses, legal fees and any awards, the standard liability limits in your homeowners or auto policy is often not enough.