Personal Umbrella insurance
One lawsuit can change everything. Personal umbrella policies protect the financial future you’ve worked a lifetime to build.
Umbrella insurance protects people when they’re sued after an event that transpired at their home, in their car, or because of something they did. For example, if you’re skiing and accidentally hurt a fellow skier on the slopes, they could sue you for medical expenses. Or let’s say you’re hosting a party at your home and someone trips down the stairs. They could sue you for any injuries as well as emotional pain and suffering.
While some insurance policies cover this type of personal liability, there are limits to what they can pay. Once those limits have been met, your umbrella insurance policy will kick in. Think of umbrella insurance as a secondary policy, with your homeowners, renters, condo or auto as your primary policy.
An umbrella policy will pay for your legal expenses and protect you if you lose the case. If you win, an umbrella policy would cover legal fees.
If you’re sued and lose, the judge could award the plaintiff an amount that exceeds what you currently have. In this situation, the judge will usually allow the plaintiff to go after your future earnings until they receive what they’re owed. If you have an umbrella policy, the insurance company will pay so your salary isn’t garnished for years to come. In other words, an umbrella policy covers your future earnings as well as your current assets.
Many activities increase your chance of being involved in a lawsuit, even if they might seem harmless. Some common activities for those individuals who should consider an umbrella are: