Personal Umbrella Policy in Action
Personal umbrella insurance serves as a crucial safety net, offering additional liability coverage beyond the limits of your standard auto, homeowners, or renters insurance policies. This extra layer of protection is designed to shield your assets and future earnings from significant claims or lawsuits.
Here is an example of the coverage in action:
After a hectic work week, Joe Smith was looking forward to a relaxing weekend with his wife and kids. He was just a few blocks from home when his cellphone rang. He glanced down to see who was calling. That split-second distraction was all it took for him to miss the approaching stop sign.
Joe plowed into the side of a passing car. The accident resulted in serious injuries to the driver and passenger of the other vehicle. Joe was sued, found at fault and ordered to pay $1million for medical expenses, lost wages and the pain and suffering of the injured parties.
Although the had auto insurance, the policy had a limit of $300,000. That meant that unless Joe had another way to pay the remaining $700,000, his assets (retirement savings and college funds for his teenage daughters) were at risk of being garnished.
Fortunately, Joe was able to keep his assets because he had a personal umbrella liability insurance policy to cover the remaining balance. Just as an umbrella shields you from the rain, an umbrella insurance policy protects you from a downpour-that worst case scenario where you could lose everything in a lawsuit. Even if your assets are few, umbrella insurance also protects your income; in some settlements, wages can be garnished up to 10 years.
Did you know, dependent teenage drivers on your auto policy are also covered?!
Final Thoughts
Why put your nest egg, retirement savings and other hard-eared assets at risk? By extending coverage beyond the limits of primary policies, umbrella insurance provides an added layer of security, ensuring that your assets and future earnings remain safeguarded. Umbrella insurance is an affordable layer of protection typically starting with $1 million in coverage. Consulting with an experienced insurance agent can help tailor a policy that meets your specific needs and circumstances. Call RISE Insurance for more information at 423-541-1111.
