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R&R Insurance Blog

Personal Umbrella Liability Basics

Posted by Brandy Enger

Umbrella-Coverage.jpgIt’s an unfortunate fact that accidents happen – and it’s not uncommon for jury awards and out-of-court settlements to run into the millions.  While it’s difficult to pinpoint the monetary consequences of the risks you and your family take each day, are you certain your current liability insurance offers you enough protection?

For example, what if:

  • You accidentally run a stop sign, causing a serious accident?
  • The Amazon delivery person falls on your sidewalk and is seriously injured?
  • You are sued for liable/slander for posting a seemingly harmless comment on-line?

If you are found to be legally responsible for injuring someone or damaging their property, without a personal umbrella, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket.  A personal umbrella liability policy protects your personal assets – and future earnings – by kicking in when your standard liability coverage is exhausted.  Additionally, a Personal Umbrella will cover the cost of a legal defense if a suit is filed against you.

 

How Much Coverage Do I Need?

You’ll want to take into consideration not only your total personal assets but also your potential personal risks.  For example, does your profession or location of your home make you an easy target for a big settlement?  Do you have a busy lifestyle that puts you behind the wheel frequently?  Coverage starts at $1 million, and it’s not uncommon to see limits as high as $10 million. 

 

How Much Does Coverage Cost?

Additional liability insurance is inexpensive when compared to the added coverage you gain.  A $1 million umbrella policy typically costs less than $300 a year, and increases by $50-$100 annually for each million thereafter.

 

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Topics: Private Client Group, Personal Umbrella Coverage