A personal umbrella insurance policy can give you added protection and peace of mind.
Property insurance and liability coverage are important, but a personal umbrella policy provides the extra coverage you might need.
With property insurance, you are insuring a tangible item. That tangible item could be a boat or diamond ring, and it will have a specific value. The limit of the property insurance will reflect that value.
Liability insurance, on the other hand, protects you from negligent behavior. You can’t easily put a price tag on behavior. When we engage in certain type of activities, there is always the possibility of injuring another or damaging his or her property.
For example, if you were to be sued for causing a car or boat accident, the limit on your auto and boat policy would be used up first. However, if you have a $1 million liability limit but are ordered to pay $2 million in damages, your auto or boat policy would not provide enough coverage. You’d be responsible for paying the second $1 million out of your own pocket.
A personal umbrella insurance policy will help you avoid that situation because it provides additional liability coverage once the primary policy runs out.
It might make sense for you to have a personal umbrella insurance policy for your auto or boat, as lawsuits can easily skyrocket beyond $1 million.
A personal umbrella insurance policy might also be good in addition to your homeowner policy.
Business owners, especially, should have a personal umbrella insurance policy so they are protected if they are sued personally as well as professionally.
So can you ever have too much liability insurance? The answer is no.
That’s because you never know how much you would need if you are
brought into a lawsuit. You can buy a $1 million policy but end up in a lawsuit for $5 million. This is why it’s always best to buy as much liability insurance as you can afford.
Your agent can help you determine how much coverage is right for you.