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Insurance Tidbits:
Do You Need a Personal Umbrella
Policy?
You have worked
hard over the last several years to build a “nest egg” for your
family. You have equity in your home and assets set aside for
college funding and retirement. Everything looks good for the
future and you are on track to meet your financial goals. So,
what’s wrong with this picture?
Unfortunately, the
news reminds us each day of the potential for unfortunate
accidents. Consider how much you might be sued for if you
caused an accident where someone was seriously injured,
permanently disabled, or even died. (Whether it was reaching for
your cell phone or changing the radio station, we have all had our
close calls) Would your current policy be sufficient to cover the
damages? If not, your personal assets could be at risk. Your
future wages may also be garnished to help pay off any
damages.
It is for these
catastrophic losses that a Personal Umbrella Policy can help
provide peace of mind and financial protection. An umbrella
provides excess liability over what is provided on your underlying
auto and homeowner policies. Coverage can usually be extended to
rental properties as well. Most umbrellas are issued with a $1
million limit, although higher limits are available. Combined
with an auto or homeowner policy offering $500,000, the total
coverage available would $1.5 million.
In some cases,
umbrellas also provide coverage that may not offered by your other
policies. One example is personal injury. If someone sues you
for libel or slander, your homeowner policy may not provide
coverage. Although, you may not be guilty, there is still a cost
for legal defense. Some umbrellas provide coverage for this
expense, and then pay on your behalf if any damages are awarded to
the other party.
With an annual
premium around $300, a Personal Lines Umbrella is one of the best
values that an insurance company offers. It is a very small
investment to help protect your family’s current lifestyle and
future goals.
Jon Gardner,
CPCU is an Insurance Agent with Farmers
Insurance who offers complimentary insurance evaluations. His
office is located at 27907 Smyth Dr., Suite #101 in Valencia. He
can be reached at (661) 775-9244 |
