Prepare for Life’s Storms with Umbrella Insurance

Prepare for Life’s Storms

With Umbrella Insurance

Imagine a group of children playing on the swing set in your backyard.  One of the kids falls off and is seriously hurt.  Her parents sue you, claiming the swing set is defective, and they are seeking one million dollars in damages.   

An accident like this can happen in the blink of an eye, and it can happen to anyone.  Today, more people are pursuing liability claims and courts are awarding expensive verdicts at an alarming rate.  Remember that woman who sued the fast food chain after she spilled coffee on herself?  She was awarded $3 million.  The fact is, just one lawsuit could cause you a lifetime of economic hardship.

But an umbrella policy could protect you from financial disaster.

What is an umbrella policy?

Personal umbrella insurance applies if the liability limits on your regular home or auto insurance are exhausted.  In some situations the umbrella policy might offer protection when your auto or home policy does not.

The cost for a $1 million umbrella policy averages between $150 and $300 annually, according to the Insurance Information Institute.  Each additional $1 million of coverage costs about an additional $100 annually. 

That means for less than the cost of a dinner out - $13 to $30 per month – you can purchase extra coverage to help protect against a financial catastrophe.

Who needs an umbrella policy?

While everyone could benefit from extra liability protection, an umbrella policy is especially important for:

Anyone wishing to protect his or her property.  A person may have to sell their home or other property to pay for a lawsuit.

People entering retirement.  If you’ve worked hard to save money for retirement and you get involved in a lawsuit, that money or other assets could be taken.

Some accidents might be outside of your control, but don’t let an unfortunate incident put you at serious financial risk.  Prepare for life’s storms with an umbrella.1