Did you know if you accidentally injure someone or damage their property, you could potentially be involved in a costly lawsuit? Don't let that happen to you!
What does umbrella insurance cover?
Umbrella insurance is extra insurance that provides you additional protection beyond your existing limits and coverage of other policies. If you accidentally injure someone or damage their property, you could potentially be involved in a costly lawsuit. Verdicts amounting to hundreds of thousands of dollars are being awarded by juries across the country in increasing numbers. Even though your underlying policies may provide substantial liability limits, it is not uncommon today for juries to award damages that exceed those limits.
Depending on your policy, umbrella insurance can cover you and members of your household against lawsuits for things like:
Injuring someone else.
Damaging someone else’s property.
In addition to paying damages up to your liability limit, your umbrella insurance will typically also cover associated legal costs beyond that amount. Say you have an umbrella policy with $1 million of liability coverage, and someone sues you for that full amount. If a court finds you liable, your insurer would pay the $1 million plus provide your legal defense or cover your fees.
Do you need an umbrella insurance policy?
There’s no law requiring you to buy umbrella insurance. But if you have a lot of assets or a high chance of being sued, you might want an umbrella policy. It might be worth buying umbrella insurance coverage if you:
Have significant savings or other assets.
Are worried about liability claims against you when traveling outside the U.S.
Own things that can lead to injury lawsuits such as pools, trampolines, or guns.
Are a landlord.
Have an inexperienced driver in your household.
Coach kids’ sports.
Often host parties in your home.
Serve on the board of a nonprofit.
Regularly post reviews of products and businesses.
Take part in sports where you could easily injure others (such as hunting, skiing or surfing).
Are a public figure.
Umbrella coverage from Choices Insurance gives you higher coverage limits and peace of mind.