Umbrella policies will protect your existing and future personal assets, like estate gifts and wages, against the cost involved if you lose a lawsuit over an accident that takes place on your property or with your automobile. If you lose a lawsuit of this type, you will likely be responsible for costs that include lost wages and medical expenses, which add up very quickly.
Some people mistakenly believe that only wealthy people need umbrella policies. This is not true. Even if you own nothing that can be considered an asset, you can have your wages garnished if you lose a lawsuit. BKCW Insurance can explain the consequences of going without personal umbrella insurance.
Umbrella policies pick up where homeowners and auto insurance policies stop. They have high deductibles, since the deductible is usually met by your other insurance policies, according to Investopedia.com.
Umbrella policies give you excess coverage beyond what your other policies provide. If you lose a lawsuit and your auto policy covers $300,000 per accident for medical bills, and you have an umbrella policy for $1 million, it will pay the amount you are ordered to pay, over the $300,000 paid by your auto policy. Umbrella policies usually give you a large amount of coverage in addition to your regular policies, and the coverage can be quite high if you have many assets. You may also incur legal costs if you are sued. These are covered by umbrella policies. Some insurance companies might also pay if you lose wages to appear in court.
Umbrella policies can be used to protect dependent children. If your son causes a vehicle accident, you will be covered. They will also usually cover you if you or your child has an accident while operating a boat, and cover accidents that may occur on any rental properties that you own.
Personal injury lawsuits may also arise from mental anguish, malicious prosecution, abuse of process, imprisonment, detention, false arrest, defamation of character, libel or slander. Your umbrella policy will usually cover you in these instances.
If you have other questions about this type of policy, we’d be happy to answer them for you. Contact BKCW Insurance – we’re ready to help.