If you’re faced with a lawsuit, injury, or accident, your expenses may exceed the existing liability coverage of your auto or homeowner’s policy. If coverage falls short, a judge could order you to pay up – liquidating your savings, your home and personal property, and even garnishing your wages.
Personal umbrella (also referred to as executive umbrella) is a broad coverage liability policy designed to protect your personal assets from bodily injury and/or property damage lawsuits, preventing you from incurring these unexpected expenses.
A personal umbrella policy covers a much higher limit and goes above and beyond claims directly relating to your current active insurance policies. Here are just a few examples of the types of claims that may be covered:
- You cause a car accident that results in serious injuries to your passenger, as well as the four people in the other car. Each of the injured individuals decide to take legal action against you for amounts far exceeding the liability limits of your auto.
- Your child posted a seemingly harmless photo on a social networking website. One of the people in the photo sued you for ‘personal injury.’
- Your dog bites someone walking by your house and you are sued for the medical expenses and damages.
- Someone slips and falls on the steps leading to your house and sustains serious head injuries, requiring treatment that far exceeds the limits of your homeowner’s policy.
The main purpose of an umbrella policy is to protect your assets from an unforeseen event in which you are held responsible for damages or bodily injuries and is an important piece of the puzzle when insuring the protection of your most valuable belongings.
To discuss your coverage options with an experienced professional, contact First State Insurance at 402-979-7636.
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