In today’s increasingly litigious society, a personal umbrella policy can offer even more protection for your assets and greater peace of mind for you and your family. The cost is minimal when compared to the financial ruin you could face if someone had a legitimate claim against you for large damages.
An umbrella policy picks up if the limits of your home or auto policy have been exhausted when paying for a judgment that could be related to a fatality or catastrophic injury in an auto accident, accidental injury that occurs on your property or accidental damage you cause to someone else’s property. It could even provide coverage for reputational damage caused by a remark made on social media.
Take into account your net worth as a starting point when thinking about coverage limits, but keep in mind that a judgment rendered by a court could also affect your future earnings. Some risk factors that may encourage you to consider an umbrella policy may be having a teenage driver in your family, owning a dog, having a swimming pool on your property, using social media, or hosting guests and entertaining in your home.