A personal umbrella insurance policy, simply defined, is your protection in case you are ever involved in a high-dollar liability case. It’s the word that everyone fears, lawsuit. People and lawyers are suing for nearly everything today, and juries are awarding more and more money to the injured. That money comes from somewhere, and unless you have an extra five million laying around, a ruling in the 7 digit range can be financially devastating to you and your family. A Personal Umbrella Insurance Policy has been created to help you avoid such situations.

Do I Need A Personal Umbrella Insurance Policy?

While you may not ever see yourself accidentally rear ending a school bus on your way to work one morning, you may be able to imagine the millions of dollars you could be sued for if one or many of those children are injured. Accidents can happen frequently, and with so many people suing for these accidents, it is best to be prepared in the event one of these happens to you. What if someone gets hurt on your property, and sues you for it? Going out to the lake with some friends? What happens if someone gets hurt while in your boat or on your jet ski? You could be found negligent and be forced to pay. The fact is that even though you can’t keep these accidents from happening, you will be financially responsible for them.

Additional Personal Umbrella Insurance Policy Details

An Umbrella Policy is usually purchased as rider on another type of insurance policy (typically a homeowner or automobile insurance policy), and sometimes purchased as a stand alone policy. It provides liability coverage over your regular homeowner and automobile insurance. An Umbrella policy is usually called “second tier” insurance, meaning that it will only be paid out once the limits from your first tier (homeowner and automobile insurance) are depleted. These types of policies often push a million dollars and up, and the premiums are very low since most things will be covered under your regular policies in case something happens.

I know and work with a very intelligent older gentleman that has been retired, and returned to work due to the early millennium recession and the toll it took on the stock market. He carries an umbrella insurance policy just as a backup insurance policy. In these days of greed, selfishness, and vanity it pays to be prepared…

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