Have you ever considered getting an umbrella policy?
People with significant assets or savings are more at risk for being sued for extensive damages in the event of an accident. If you don’t have an umbrella policy you could lose everything and turn out bankrupt.
For example: A lawyer runs a red light and hits a couple with a child in a really expensive car. The family is injured and ambulances come and take them to the hospital. The lawyer is found to be at fault and their insurance is not going to cover all of the damages as well as all of the medical bills. Luckily the lawyer has an umbrella policy to cover any remaining costs their insurance won’t. Without umbrella coverage the family could sue the lawyer for the costs. Since the lawyer was already found at fault they would have to sell assets or potentially drain savings accounts.
An umbrella policy is just that, a policy to cover you on a broader spectrum. Think of it like your regular insurance is a hat and umbrella coverage is an umbrella. Umbrella insurance is extra coverage for any situation regarding damages caused to or from your assets. This means you’re covered for extra costs beyond your normal insurance just like the lawyer was.
However, having an umbrella policy isn’t just for doctors and lawyers.It is also referred to as personal liability insurance and can be used by everyone.
Personal liability is especially useful for those who own things that may be considered risky or could cause injury. Personal umbrella will cover things you could be held responsible for. Things such as swimming pools, trampolines, or even pets such as dogs.
Umbrella coverage will also cover things such as vandalism or destruction of property to others property.
Say you are at the grocery store and hit a car with a shopping cart, it could be considered vandalism and you’re held accountable to fix it. An umbrella policy would help cover that so you’re not paying out of pocket for the damages.
Umbrella policies are commonly overlooked and seen as unnecessary, but maybe you should reconsider. Even if the scenarios I’ve described above don’t apply to you there are many others that may, and you could be at risk. Reach out today to talk with one of our insurance agents here at John Scott insurance to see if getting umbrella insurance is the right move for you.