Personal Umbrella Insurance

Just as the name implies, this type of policy acts like an umbrella, protecting you against potential financial disasters and unforeseeable circumstances.

Personal umbrella insurance is a form of liability insurance and covers:

• Injuries you cause in a car accident
• Injuries someone suffers on your property
• Property damage you cause in an accident
• Property damage your pet causes
• Property damage a dependent or child causes
• Attorney fees and other legal costs if you’re sued

It does not cover:

• Your own medical expenses
• Losses to your property

Your existing insurance will protect you to a certain extent, but an umbrella policy goes much further for less cost than upping the limits on your existing policy because it covers for different types of risks. Umbrella insurance is also mobile, in most cases; it can continue to protect you wherever you travel―even overseas.

Since the terms of umbrella insurance policies will vary, depending on insurance companies and your own personal needs, a qualified insurance agent from The J. Morey Company is the best person with whom to discuss the benefits, restrictions, and coverage from each carrier they represent.

Actually, anyone with a job who expects to keep the income they earn, could benefit from having an umbrella insurance policy.

Let’s review an example of how umbrella insurance could potentially save you from financial ruin.

What would happen if someone made a delivery to your house, slipped on a wet part of your sidewalk, and suffered severe head injuries from the fall. They sue you so that you can cover the medical payments from their injuries.

Your homeowners insurance first kicks in and pays up to its maximum limits. But the jury finds you are responsible for an extra $500,000 over your homeowner’s limits.

How will you pay for the extra $500,000 that you owe? Don’t forget about any legal fees that you’ve accumulated along the way. This small incident could financially set you back for years.

Umbrella insurance covers the amount that exceeds your homeowner’s coverage, on average up to $1-2 million. Having an umbrella policy could spare you from a potential financial nightmare.

Relative to the amount of protection you get, umbrella insurance is very affordable. Each umbrella policy is unique to the individual policyholder. Your specific cost will be determined by:

• The amount of coverage you purchase
• Your insurance carrier’s provisions
• Your risk profile and driving record

You may be able to save even more money by purchasing umbrella insurance from the same carrier who provides your home and/or auto insurance.