An Umbrella Policy (AKA; Excess Liability Coverage) is essentially a secondary form of insurance. It provides liability protection above your standard homeowner, auto or boat insurance.
The Umbrella Policy coverage can protect you from:
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Significant property damage or serious bodily injury liability: When your standard auto or homeowners insurance liability limits are exhausted, the umbrella policy will help cover the additional expenses.
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Landlord Liability: Coverage for a lawsuit filed by a tenant that sustained an injury while renting your property.
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Libel or Slander: Coverage for a lawsuit that resulted from something you said or wrote about another person.
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Malicious Prosecution: You may file a suit against someone and in-turn be sued for wrongfully prosecuting that individual.
Without umbrella coverage, you would have to pay out-of-pocket for any costs beyond your home or auto insurance limits.
I don’t have any Money or Assets, do I REALLY need Umbrella Insurance?
Accidents, unfortunately, do happen. Imagine, causing an automobile accident that severely injured or killed the other motorist. A judge will not dismiss you from your responsibility of paying for the damages, and medical bills just because you don’t have any money. When you have no assets, you may be obligated to pay off the damages awarded with your future earnings!
How Much?
Umbrella Insurance is very inexpensive. Depending on the amount of coverage you decide to purchase, it could cost as little as $140 a year for $1 million dollars of coverage.
If you don’t already have Umbrella Insurance, you should strongly consider it…Because When it rains, it pours.
