Personal Umbrella Policy Provides Extra Liability Protection
Do you ever wonder if your family has enough insurance to cover a large claim against you? And do you know where the money would come from, if you weren't adequately insured?
The answer comes from insurance professionals who increasingly recommend a personal umbrella policy, which kicks in when policyholders reach the limit on the liability coverage in their home or auto policies.
What's Your Exposure?
Today, anyone can be sued, and million-dollar judgments are becoming more common. And, alarmingly, any amount exceeding your standard liability policy would fall to you. In order to cover the costs, you could be forced to use money from your current assets, such as savings accounts, 401(k)s or even your home. And your future earnings could be at risk as well.
So, while these types of catastrophic events are unlikely, insurance companies offer a personal umbrella policy for customers who want to protect their assets and feel more secure.
The Hartford offers umbrella liability insurance with $1 million, $2 million and $5 million in coverage. Since these types of events are rare, umbrella insurance rates are relatively affordable.
How Umbrella Insurance Works
If there is a covered liability claim under your auto or homeowners policy and the dollar amount of the judgment is greater than the coverage limits you have purchased on those policies, the personal umbrella policy goes into effect. Certain limits must exist on your auto policy before you can purchase umbrella liability insurance.
The big question is often: How much coverage should I carry? The answer usually depends on your net worth. Counting up your home value, stocks, mutual funds, and retirement accounts is the first step.
The need for a personal umbrella policy can vary depending on your situation and your individual needs. Call an insurance specialist at The Hartford at 1-888-546-9099 to learn if personal umbrella insurance is right for you.
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