Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners liability policies to provide extra liability protection for you and your family. Most Americans carry liability coverage on their cars and home that would provide insurance coverage that could be used to pay claims in the event that you or a member of your family negligently caused injury to another person. Umbrella coverage is designed to pay only after your other policies are exhausted.
Why do you need umbrella liability insurance? Accidents can happen to all of us. If we cause injury to another person, the law holds us responsible for the injury and damages caused to the other person. For instance, your inattention caused a serious automobile accident in which someone was seriously injured or killed; or you failed to property maintain the brakes on your farm truck and an employee was unable to stop in time to prevent a terrible accident. Often, we do not carry enough automobile insurance or homeowner's coverage to pay for the damages that we may cause.
Unfortunately, home owner's insurance or automobile coverage may not be enough to protect your assets in the event of a serious injury or death. If your negligence results in damages to another person in an amount that exceeds your insurance limits, how and where would you get the money to pay the debt? Your assets, including your home or your investments could be at risk. If you have accumulated even a modest amount of assets or if your travel habits or business pursuits put you at risk, you should consider purchasing umbrella liability coverage as part of your financial planning strategy.
Umbrella liability insurance is relatively affordable, and can be easily coordinated with your existing insurance policies. Usually, there is a substantial discount in the insurance premium if you purchase your umbrella liability coverage, homeowners and automobile policies from the same company.
Insurance can be confusing. If your or a loved one are seriously injured, or if you have questions regarding your coverage, you should contact an experience professional regarding your rights under the law. The attorneys at Tatlow, Gump, Faiella and Wheelan, LLC, have years of experience dealing with insurance companies and are familiar with how insurance law affects you and your family's financial situation. Please call us for your insurance law questions,
