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Personal Umbrella Insurance

A personal umbrella insurance policy protects someone from being sued and losing all of his/her worldly possessions in the event that an accident occurs in which he/she is held responsible. Even people who have auto or homeowners insurance can be sued for an amount of money above and beyond what their policies cover. For this reason having personal umbrella insurance is necessary and beneficial to just about everyone. There are many things that could happen. A person could slip and fall while on the policy holders property or the policy holder could be the cause of a serious automobile accident. In either case a sizable law suit could be filed putting all of the policy holder’s assets at risk. If a personal umbrella policy is in place then it would help to cover the policy holder in situations such as these.

Who Benefits from Personal Umbrella Insurance?
Some people are under the misconception that personal umbrella insurance is just for wealthy but this is false. Everyone can benefit from personal umbrella insurance that is why there are so many insurance companies offering polices at competitive prices. Anyone who drives an automobile, owns a piece of personal real estate property, owns a boat or RV or even a motorcycle can be sued in the event of an accident that results in injury. Considering that most people over the age of 18 drive cars it stands to reason that all of them could benefit from a personal umbrella insurance policy.

Are There Any Other Requirements?
Most companies that sell personal umbrella insurance will require that the person is also covered by his/her own liability car or homeowners insurance before they will cover the individual. However, if a person is able to obtain a personal umbrella insurance policy without meeting this requirement then the consequence would be that he/she would wind up being fully responsible for the defined amount of liability he/she should have had and the amount the umbrella policy covers. For this reason it is unwise to have a personal umbrella policy without keeping your own liability insurance current. Umbrella policies normally cover very large amounts, in fact millions of dollars in most cases.

Is Having a Personal Umbrella Insurance Policy Expensive?
The truth of the matter is that a personal umbrella policy typically ends up costing about $100 dollars a year give or take a few dollars, per 1 million dollars in coverage. However, it is always suggested that you not try to save pennies where your umbrella insurance is concerned and that you purchase a minimum of 5 million in coverage. This might mean that your premium would be about $500 a year but in the scope of things and with the protection offered this is not a lot of money to pay for that amount of protection.

No one can predict the future but one thing is a certainty. Things happen to people everyday that are unexpected. For this reason having your ducks in a row and making sure that you are always covered in any event is always a wise choice. Every day people file law suits for one reason or another. In some cases those law suits are frivolous and fictitious but much of the time they are won. When this happens the person being sued can find himself or herself in a world of trouble that could quite easily cost him/her everything he/she has ever worked for. After careful though on the matter it should be clear that not having a personal umbrella insurance policy is a very foolish decision indeed.

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