Bankers Insurance recommends each one of our clients consider a personal umbrella liability insurance policy. It is one of the least expensive and most broad coverages available, protecting against exposures left by other policies.
Today the average citizen faces liability from many directions. Even if we maintain our home in safe working order and drive defensively, accidents still occur. Court judgements can be large. According to a opens in a new windowrecent survey by Martindale-Nolo, 16% of personal injury settlements are over $75,000. Even baseless cases are expensive to defend. If your homeowners, auto, recreational vehicle, or boat coverages are not adequate, any remaining settlement balance is paid from your personal assets. This means your savings, investments, and even your home could be placed in jeopardy. A personal umbrella liability insurance policy protects against this exposure.
A personal umbrella liability insurance policy provides an extra layer of coverage over top of standard liability policies such as your homeowners, auto, ATV, or boat insurance policies. It protects your personal assets by kicking in when these coverages are exhausted.
Any of these scenarios could result in large judgments that trigger the need for personal umbrella liability insurance.
- You cause an automobile accident that injures another party. (Injury of people results in the largest judgements.
- A family member is enjoying your boat or all-terrain vehicle and injures bystanders.
- Your friendly family pet gets spooked and bites a visitor to your property.
- You organize a neighborhood get-together at your home and a visitor injures themselves on your stairs.
- A burglar enters your property and you defend yourself, but injure the intruder.
How Much Personal Umbrella Liability Insurance Coverage Is Enough?
No one can predict what a future court settlement might entail; we must consider the possibilities. Bankers recommends at least a $1,000,000 personal umbrella liability insurance limit. However, plaintiffs often consider a defendant’s assets when deciding whether to sue and the amount of the suit. The more you own, the more you have at risk. Thus, consider your net worth when deciding upon appropriate levels of coverage.
For more information, contact your Bankers Insurance agent. Not a client of ours? Let us compete for your business. Each one of our clients is assigned a personal agent in our office, given their email address, and provided a phone number that rings right on their desk. Give us a call at (800) 541-1419, email us, or visit our personal umbrella insurance web page.