Nowadays, lawyers and lawsuits are all around us. It is impossible to predict whether you could be involved in a lawsuit resulting from an accident on your property or a car accident. Courts are awarding larger payouts than ever before. If you are involved in an accident, do you have enough liability insurance to protect yourself? The financial loss can be devastating to you and your family. You may want to safeguard yourself and your possessions with an umbrella policy.
Now you may be asking yourself, what is an umbrella policy? An umbrella insurance policy protects your existing personal assets and future income like wages, inheritance and/or winnings of any kind against the cost of losing a lawsuit over an accident on your property or in your car. If you were to lose such a lawsuit, the medical expenses and lost wages can get very costly, very quickly. Since no one can predict how a judge may award the injured party, umbrella insurance is not just for the wealthy anymore, but a necessary protection for everyone.
An umbrella policy starts where your homeowners and auto insurance stops. As an example, say your auto insurance policy pays $300,000 of medical expenses per accident and your umbrella policy is for $1 million. If you are sued for $900,000, your auto insurance would pay $300,000 of the damages and your umbrella policy would pay the remaining $600,000. Umbrella policies usually provide $1 million to $5 million of additional coverage but its possible to get an even larger policy if you have significant assets to protect.
Keep in mind that an umbrella policy is a type of "personal insurance" and will not protect you from lawsuits related to any type of business you own.
The good news is that personal liability insurance policy can give you added protection without a big additional cost. Considering the added protection you can get, additional liability insurance is usually inexpensive. The team at R. L. Thomas Services in Encino, Ca can discuss your additional needs and suggest a policy that is perfect for you and your budget.
by: MaryAnnBozek
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