What is an “umbrella insurance policy” ? Is an umbrella insurance policy right for you?
Yes, umbrellas protect us from the rain, but what about the proverbial “rainy day”. I’m speaking of the situation where you and/or a family member causes significant damages to another. Thousands of circumstances can arise when your available automobile insurance policy or homeowner’s policy isn’t sufficient to compensate someone for the damages you may have caused. In those situations, it is common to experience anxiety and fear that someone will try and take from you the assets that you have worked so hard to create. That is where an umbrella policy provides you the protection that you need.
In sum, ‘umbrella insurance’ is extra liability insurance. The people in the insurance industry commonly refer to it as excess coverage. It is designed to protect you and/or your family from serious claims, thereby protecting your assets. In most instances, umbrella policies provide (1) additional liability coverage above the limits of your homeowners, auto, or boat insurance and (2) coverage when a that serious claim may be excluded as a covered loss under your other policies. For lack of better words, it is a catch all for liability claims (your last line of defense).
Umbrella coverage is not for everybody. Many insurance carriers require that you have in place a fairly large underlying liability policy before the carrier will issue an umbrella or excess policy. This will mean something to you, if you want to protect those significant assets that you have worked so hard to obtain.
If you learn by examples, try this one:
Your driving to work (5:00 a. m.) after a long night in the office. Your drinking your cup of Joe and still a little groggy. You cause an automobile accident, striking a bicyclist. The cost of the injuries are in excess of $500,000.00. Luckily, you carry good automobile liability insurance in the amount of $300,000.00. Your automobile insurance policy pays the injured bicyclist $300,000.00. Who is going to cover the remaining $200,000.00. If you had an umbrella insurance policy, it is very likely that you would have coverage available to satisfy these excess damages.
If you have questions about your current coverage, call the attorneys at Brannon & Brannon to discuss your concerns. If you have been injured in an accident and you are concerned about your medical bills, lost wages, and whether the negligent motorist carried liability insurance, call us at 850-863-5297.
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