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Umbrella Policies Provide an Extra Layer of Protection (Fall 2006) << Back
Hopefully, you will never be served with legal papers and be involved in a costly lawsuit. But in the event you are, it will be imperative that you have the insurance to cover your legal liability. That's where a personal liability umbrella policy can help. Umbrella policies supplement the liability coverage you have through home and auto insurance and provide an extra layer of security by protecting your assets that might be at risk in a liability lawsuit.
If you don't have enough liability coverage from your homeowner's and auto policies to adequately resolve a claim, the person suing you can go after your home and your other assets to pay for damages. Umbrella policies cover damage claims the you, your dependents, or even your pets may cause.
Umbrella policies come into play after, and pay in addition to, your auto and homeowner's insurance liability limits. The bulk of the risk is assumed under the primary auto or home policy, which enables insurers to offer umbrella policies at very reasonable costs.
However, most insurance companies will not provide an umbrella policy unless both your auto and homeowner's insurance is with them. In addition, your insurer may stipulate that your auto or homeowner's liability limits be at least a certain amount, such as $500,000. Umbrella policies are generally sold with a deductible that might run anywhere from $250 to $1,000, which is pocket change if you're being sued for millions!
Umbrella policies provide much broader liability coverage than just excess limits over your auto and homeowners policies in case you are sued. Certain umbrella policies, for instance, also cover you if you face liability arising from your service on the board of a civic, charitable, or religious organization.
Umbrella policies typically do not cover claims from business endeavors. If you own a business, even a small one, you'll need to purchase business insurance to protect yourself from business-related liability claims.
To determine if you need an umbrella policy, analyze the risk of your being sued in this litigious climate and the valuable assets that you have accumulated over the years that may be at risk. Let us compare the umbrella premium with the large amounts of liability coverage you will be afforded. You will be surprised by the cost effectiveness of the personal umbrella policy.
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AHTKY Insurance Agency, LLC
1451 W. Artesia Blvd, Suite A, Gardena, California 90248
CA License: 0C46036