The Potential Cost of Not Having a Personal Umbrella Policy

In today’s litigious society, the absence of a personal umbrella policy can expose individuals to significant financial risks. A personal umbrella policy can offer additional liability coverage extending beyond the limits of typical home, auto and other personal insurance policies. Without this extra protection, individuals could encounter severe financial repercussions if faced with a major liability claim.

Why Should I Get Umbrella Insurance?

One of the primary risks of not having a personal umbrella policy is the potential for substantial out-of-pocket expenses. For instance, if you are found liable for a car accident that results in severe injuries to another party, your auto insurance may cover up to its limit. Still, any costs exceeding that limit would be your responsibility. This could include medical bills, lost wages and legal fees, which can be costly.

Moreover, personal assets such as savings, investments and property could be at risk. In the absence of sufficient liability coverage, plaintiffs may seek compensation through your personal assets, potentially leading to the liquidation of your home, retirement funds or other valuable possessions. This scenario may concern individuals with significant assets or high net worth.

Another critical aspect to consider is the broader range of coverage umbrella policies can offer. These policies can often help cover claims that are excluded by other liability policies, such as libel, slander, false arrest and liability on rental properties. Without an umbrella policy, you may be vulnerable to lawsuits stemming from these situations, further increasing your financial exposure.

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For umbrella insurance near you, contact Liberty Pro Insurance

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.