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The Benefits of a Personal Lines Umbrella Policy
Many people are unaware why they need a Personal Umbrella Policy. This policy will protect you against a catastrophic liability loss because it provides high limits of liability and may pay for losses not covered by the underlying policy, such as legitimate allegations concerning libel or slander.
If you think that only wealthy individuals purchase this coverage, this is not the reality. Middle-income individuals are purchasing this coverage too because they recognize that the tendency to sue for damages rises and awards granted by the courts grow. Also, this policy is attractive because of its relatively low cost.
If you identify yourself with one of the following situations, you need to consider purchasing a Personal Umbrella Policy:
- Your total assets are greater than your underlying liability limits.
- You are financially responsible for the actions of a young, inexperienced driver.
- You live in an exclusive and affluent neighborhood.
- You have a high-profile career or high income.
- You frequently host guests on your property.
- Your residence includes a swimming pool.
- You own waterfront property, a farm, or a ranch.
- You own watercraft, aircraft, or off-road vehicles.
- You own numerous rental properties.
- You engage in extensive international travel for pleasure.
Consider the following scenarios to understand why having a Personal Umbrella Policy is important, as these situations could happen to you. Imagine an apartment dweller who inadvertently starts a fire while smoking in bed, and the fire damages adjoining apartments. The smoker’s liability exposure could be enormous in such a situation.
Another example could be a major car accident that injures numerous people or causes head injuries or death that will result in liability far in excess of the limits typically purchased in a personal auto policy. Don’t you think a personal umbrella policy is a wise purchase for people in nearly all income groups?