GIMME SHELTER- Rainy days? Deploy your bumbershoot

Gary Albert
State Farm Agent
PHOTO COURTESY GARY ALBERT

Q: How can I protect the financial assets of my household, should I be sued? 

A: There are so many "rainy days" that people can experience– a sick child, a broken-down car or a late mortgage payment.  

But, what about a lawsuit?

These days lawsuits are being filed not just against big companies, but also against people like you and me. In the blink of an eye, you could be involved in a car or boating accident, or have someone injured on your property that could result in litigation against you seeking thousands or even millions of dollars.

Even though your primary insurance policies– Auto-, Homeowners-, and Boat-owners, for example– may provide substantial liability insurance coverage, it may not be enough. A Personal Liability Umbrella Policy provides additional amounts of liability coverage at an affordable price.

What is an umbrella policy?

A Personal Liability Umbrella Policy provides additional coverage over the liability coverage of your underlying policies. Personal umbrella coverage amounts typically begin at one million dollars and can be increased in increments of one thousand dollars.

Here's an example of how an umbrella policy could work: Let's say your car is insured for liability with limits of $250,000 per person. You pull into an intersection, strike another vehicle and severely injure the other driver. This injured person sues you, and the judgment against you totals $800,000. Your umbrella policy would respond for the next $550,000.

Also, an umbrella policy often insures against some types of losses for which there is no coverage in the underlying policy. Examples of such loss include libel, slander, and defamation of character.

Why have an umbrella policy?

The value of a personal liability umbrella policy is to provide higher amounts of liability coverage for an affordable premium. It can help protect the financial assets of your household when you need it most and can bring confidence knowing that you have the coverage needed to help protect your family. 

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