Although many individuals believe personal umbrella policies are only of value to the wealthy, anybody can value from additional liability coverage, which is exactly what a personal umbrella policy provides.
A personal umbrella provides coverage when your primary insurance policy doesn’t provide sufficient liability protection. Depending on the company and risk exposure of the individual purchasing the umbrella policy, $1 million in coverage may only cost a couple hundred dollars annually.
Individuals who fall under any of the following categories could benefit from an umbrella policy:
· Own a home, rental properties or multiple residences
· Host social gatherings at your place of residence
· You drive a vehicle or let someone else drive your vehicle
· Have young drivers in your household
What else should I know about personal umbrellas? The majority of umbrella claims are related to automobile accidents. In fact, below are a few real-life scenarios that resulted in over $1 million dollar payouts from personal umbrella policies:
· An individual mistakenly hit the gas instead of the brake and propelled through the front of a restaurant injuring several patrons
· A driver didn’t see a motorcyclist when pulling out causing the motorcyclist to hit the side of their car
· An individual’s son was allegedly driving under the influence and struck a bicyclist.
· An individual accidently set fire to his apartment which then spread to other units.
You see, none of these scenarios are too far fetched, and all of the individuals benefited from having a personal umbrella policy. When you tell yourself, “This won’t happen to me,” realize you are not the exception, and although we hope it doesn’t happen to you, it could …it could happen to anyone.