Homeowners and Auto Insurance is an important step in your financial planning and a great way to protect your family’s assets but it is not without limitations. You can choose the amount of coverage you wish to own but, these personal insurance policies will only cover up to a certain dollar amount, usually only up to one million dollars. For coverage beyond those limitations, you will need a personal umbrella insurance (PUP) or excess liability policy. Click here for a link to one of our blogs with more details on umbrella insurance coverage.
Standard liability insurance policies provide valuable protection but, there is still a chance that you can become financially liable for a sum larger than what your policies can cover. For instance, say you cause a major car accident, does your Car Insurance policy have enough liability to cover the entire damages of everyone injured in the accident? This could be millions of dollars.
Personal Umbrella Insurance can protect your assets if you are held liable for property damage or bodily injury. It can also help cover legal fees, false arrest, libel and slander. If you are sued and do not have enough coverage with your standard car or home insurance policies, all of your assets could be exposed. This can include your house, car, savings and retirement accounts, even your future income may be at risk.
Think of Umbrella Insurance as a blanket policy that adds another layer of coverage on top of your basic policies. When you’ve reached the limits on your home or auto insurance, your umbrella insurance then helps cover the remaining costs.