The insurance policies for your home, auto, motorcycle and other property provide you with personal liability protection meaning if you are found liable, these polices will pay for the cost of the damages you are responsible for. Without a Personal Liability Umbrella, problems occur when the liability limits in these policies are too low when significant damages occur.
The most common problems occur from carrying lower auto liability limits. Auto accidents occur more frequently and the damages can be very costly. That’s not to say you can’t be sued if someone is seriously hurt on your property or while on your boat.
Every month, District Court Judge Tom Jarrell and I volunteer to speak to parents at the StreetSafe Teen Driving events about liability and insurance. Judge Jarrell shares some of his experiences from behind the bench and stories of how devastating a lawsuit can be to a person’s life. One interesting fact is that if someone is found liable and sued, nearly all of their assets are at risk. There are some exceptions but very few. Cash, investments, property such as boats and motorcycles, future earnings and even equity in a home can be taken away in a lawsuit.
The greatest way to protect your assets is to purchase a personal liability umbrella. This type of policy adds an additional “layer” of liability protection above the limits of your underlying policies such as your home and car insurance policies. You can add umbrella protection to your boat, motorcycle, vacation home or rental properties as well. The good news is that the cost of an umbrella can be very inexpensive. An umbrella for a home and 2 cars could cost less than $14 a month for an additional $1 million dollars of coverage.
So, do you need an umbrella? If you meet any of the criteria below, the answer is Yes!
- Own a home
- Own a business
- Have a teenage driver
- Have a retirement plan
- Have investments
- Have household earning over $50,000
- Own a boat
- Own rental property
- Have a dog
If this concerns you, give us a call right away. It will only take a few minutes to get you covered by an umbrella that will give you the best asset protection money can buy!