Deciding how much Personal or Auto Liability insurance coverage you need is an important question.
First off it is important to understand that most Personal Lines insurance carriers have a cap on how much underlying coverage they will offer. Typically on an auto and homeowners insurance policy they will put a cap of $500,000 as the maximum amount of coverage they will offer. Where do you go to buy more? Typically that same carrier will offer what they call a Personal Liability Umbrella. This type of policy will provide excess coverage over your Personal Auto Liability and your Homeowner’s/Renter’s Personal Liability insurance policies. Many carriers will go as high as $5,000,000 in umbrella liability coverage(higher amounts can be purchased). The cost varies depending on how many cars, drivers, properties you own. The umbrella can also go over your Rental Dwellings, Boat owners, RV, or ATV insurance, so it is important to communicate all of the different types of policies you may have with your umbrella agent. This is a BIG reason why we recommend having one insurance agent to handle all of your insurance needs, to avoid potential gaps in coverage. It is also important to review your policies annually to make sure there are no gaps if you are using multiple agents , brokers or carriers.
Some of the questions you need to ask yourself are;
- Do you want to risk all your assets in the event you were found at fault for a claim? (How much in assets do you have that may be at risk)
- How will your family support themselves if you are found negligent in a tragic accident and are responsible for the damages, bodily injury or property damages.
- Will you benefit from the peace of mind that comes with the knowledge that you and your loved ones will not be burdened?
The main purpose of the Personal Liability Umbrella policy is to protect you, your family and your assets from expensive lawsuits or other covered events. If you are the subject of a lawsuit and are sued for a large sum of money and do not have enough liability insurance or an umbrella policy to cover the costs, all of your assets including future wages, could be at risk.
An additional benefit is that some insurance carriers offer a bundle discount for having your home, auto and umbrella with them, this helps reduce your overall insurance premiums.
If you would like a quote on a Personal Umbrella policy contact our office at 877-428-8778 or log into our website at www.insuranceinc.com .