Umbrella Insurance policies cover your liability once your existing homeowners, automobile, boat, etc. policies reach their limit. Umbrella policies are not just for the wealthy anymore. With the rising number of lawsuits and the rising amount of lawsuit monetary awards, does it make sense to have additional security?
Liability insurance typically pays, when you are negligent, the medical bills, rehabilitative therapy, and lost of wages of that person. It also covers your attorney’s fees if needed. All these fees are often more than the homeowner’s policy or auto policy covers. You can also be held accountable for bodily injury and property damage as a result of your negligence and be sued for it or have your personal assets seized.
The good news is that umbrella coverage is relatively inexpensive, especially considering the additional coverage (1-5 million in liability coverage). For more info on it’s costs click here.