Lawsuits can happen to just about anyone. Lawyers help individuals sue over what seems like the smallest of issues. Unfortunately, judges and juries are also awarding a significant amount of money every year. When you buy your personal insurance, you need to keep this in mind. When you’re given the option of umbrella insurance, you need to know just how much it can help you before you automatically dismiss the extra monthly expense.
Take a look at any of your insurance policies. There is a limit on the liability aspect of your insurance. If you’re involved in a lawsuit for negligence or other damage, you may not have enough money to cover all of the various costs. This means that it would then come out of your own finances. Most homeowner policies include $100,000 for liability coverage. Most carriers can go up to $300,000 or $500,000 for a nominal cost, but is this enough coverage? Dog bites are a leader in high paid liability claims. Auto claims are an especially large exposure for liability claims. Teenage drivers can be a particular concern and one of the best reasons to secure an umbrella policy.
It has always been assumed that the California umbrella insurance policies are just for the wealthy. It’s not true. They are for anyone who is looking for the needed protection to cover them just in case. You’ve worked hard to get where you are. A single lawsuit can leave you penniless just because you didn’t have enough liability insurance.
You can avoid that completely by shopping for umbrella insurance. It will give you added protection on your liability above the current limits of your auto, watercraft and even homeowners insurance policies. Depending upon the company and the policy you choose, it could add up to $5 million extra in liability protection.
The insurance will simply “kick in” when it needs to so that it will continue to cover the expenses even after all of your other policies are completely exhausted. There’s a lot that can go wrong in life and even if it wasn’t your fault, there are lawyers out there who are very good at their job.
Lawsuits are so effective because they go after all that insurance money. The problem is that it’s your insurance money and you may not have enough of it. What then? You need to protect yourself so that your insurance policies aren’t leaving you with visible flaws that leave you vulnerable against lawsuits.
All of your insurance – for your car, your boat, your home, rental homes – has a liability amount attached to it. But if you get an aggressive lawyer that is going to help someone sue you, you need to be prepared for that. Forget about the wealthy protecting their wealth. Even if you’re not rich, you need to protect the things that you do have before someone else decides to take it from you.
Many insurance companies offer California umbrella insurance, so it’s worth looking into. It’s more affordable than you think and that extra protection will come in handy if you’re ever involved in a lawsuit. Contact us if you have any questions about personal liability umbrella or anything else!