Liability insurance isn’t something the average consumer pays attention to until they need it. Most policyholders are more concerned with the physical assets covered on their policy, and don’t take the time to consider their liability coverage.
However, liability insurance is arguably one the most important pieces of your insurance policy for your vehicle, home and any other insurance you may have. In the event of an accident, people and other insurance companies may sue you to get the maximum amount possible to cover the costs of rehabilitation, being out of work, property damage and much more. So how can you make sure you have enough liability insurance in case this happens to you?
Umbrella Liability – peace of mind
Personal umbrella liability policies extend over your underlying liability insurance.
A personal liability policy helps to protect your personal assets and cover legal expenses in case you are held liable for personal injury or property damage. Keep in mind if your liability limits are insufficient to pay the judgement, you would be personally liable to pay the remainder out of your own pocket. This could force you to sell assets such as your home or cottage, drain your savings or even have your future earnings garnished.
Umbrella liability is a good idea for everyone and especially those with assets to protect such as vacation properties, people in a profession that may open them up to being personally sued, and people who travel to the United States due to our low dollar.
Umbrella liability – also covers volunteer work, libel & slander
Umbrella liability covers other items which may not be included in personal liability forms such as libel, slander, defamation of character or invasion of rights of privacy, false arrest, liability assumed under some contracts and liability incurred as a volunteer or board member of a non profit organization.
Umbrella liability – provides extra coverage to you if injured in an auto accident
If you are seriously injured in an auto accident personal umbrella liability insurance could provide a significant benefit to you. First, you need to make sure your umbrella liability policy extends over the OPCF 44 – Family Protection Endorsement on your personal auto policy. If this is the case and you are seriously injured in a car accident, and someone else is liable, you don’t have to rely on the at-fault party to have sufficient limits to pay your judgement.
You can receive payment from your auto policy, and if need be, your umbrella liability policy up to your own liability limits. This may sound confusing but it essentially means that you are covered above and beyond the usual should significant costs be incurred.
Kennedy Insurance recommends all clients consider purchasing an umbrella liability policy, it could prove to be the most important coverage you buy. Call us today to discuss what the benefits are to you.