A personal umbrella insurance policy offers an extra layer of liability protection for your wages, house, investments, cars and boats if you're in a serious auto accident or there's an accident on your property.
A personal umbrella policy extends the bodily injury and personal damage liability limits of your home or auto policies.
Consider the following scenario: Your home insurance provides $300,000 of liability coverage. A serious accident happens on your property, and you're sued for $1.3 million resulting in a judgment against you.Your insurance pays up to $300,000 for a covered accident, but you hold responsibility for paying the remaining $1 million.If you had $1 million of coverage under an umbrella insurance policy, you'd be covered with nothing out of your pocket (other than your monthly premium). Instead, without the additional protection from a personal umbrella policy, you're looking at the possibility of needing to liquidate your assets to pay the remaining $1 million in this example.
Talk to an agent to find out what the best level of coverage is for your situation.
It's important to have sufficient coverage to protect your current assets and future earnings if you're involved in a serious accident or lawsuit. Otherwise, you could be liable for more than your current auto or homeowners coverage limits.