There are so many “rainy days” people can experience: a sick child, a broken-down car, or a late mortgage payment. But what about a lawsuit? Lawsuits are being filed these days, not only against large corporations, but also against people like you and me. In the blink of an eye, you could be involved in a car or boating accident, or have someone injured on your property that could result in litigation against you for thousands or even millions of dollars. Although your primary insurance policies, such as Auto, Homeowners, or Boat Owners, may provide substantial liability insurance coverage, it may not be enough. An Umbrella Personal Liability Policy provided an additional amount of liability coverage at an affordable price.

What is an umbrella policy? This policy provides additional layers of liability coverage on top of the liability coverage of your underlying policies. Personal general coverage amounts generally start at $1 million and can increase in $1 million increments. Here’s an example of how a blanket policy might work: Let’s say your car is insured for liability with limits of $250,000 per person. You stop at an intersection, strike another vehicle, and seriously injure the other driver. This insured person sues him and the judgment against him amounts to $800,000. Your auto policy will pay the first $250,000, but a general policy will pay the next $550,000. Also, a general policy often insures against some types of losses for which there is no coverage in the underlying policy. Examples of such loss include liability, slander, and defamation of character.

Why have an umbrella policy? This policy provides a greater amount of liability coverage for an affordable premium. It can help protect your household’s financial asset when you need it most, and can give you the confidence of knowing you have the coverage you need to help protect your family.