A neighbor's son is injured on your backyard swing...
You're involved in a car crash that injures the other driver...
If any of these accidents result in a high medical costs and injury to the other party, you could be sued.
You could even by sued for non-injury reasons, such as humiliation, libel, slander, defamation of character or invasion of privacy. What would happen if you were found legally liable?
Your auto or homeowners insurance may give you some liability coverage, but it's usually capped at certain levels.
Try this worksheet:
- Start with the value of your home and add the value of all other assets, such as jewelry, cars, recreational vehicles, vacation or rental property and savings accounts.
- Does their value exceed the limits of your liability coverage on your insurance policies?
- If you're held liable for a high damage award, it's possible you could lose all those assets, including your home, savings or even future income.
For about $20 a month, many people can get $1 million in additional liability coverage with an umbrella policy. Umbrella coverage kicks in after your auto or homeowners insurance reaches its policy liability limit. For example, if your homeowners liability limit is $300,000 and a jury awards $900,000 in damages, your umbrella policy generally would cover the additional $600,000 as well as your legal exxpenses.
For more information on an umbrella policy or any insurance questions please contact:
Virginia Trowbridge at virginia.ctrowbridge@farmersagency.com
*image from istockphotos.com
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