It’s hard to imagine that you might one day be sued, especially for something that wasn’t really your fault. You try to be safe and cautious, and you’d never try to purposely injure someone or cause property damage. But accidents happen, and it’s difficult to predict what the outcome might be or how an accident victim will react. Big lawsuits are filed every day, against people just like you.
You can’t stop someone from suing you, but you can make sure a lawsuit doesn’t ruin you financially. Here’s why you need an umbrella insurance policy.
Avoid the Expense of a Lawsuit
You can never completely avoid lawsuits. They’re all too common, and they can happen to anyone. If someone can get hurt on your property or as a result of your actions, you can be sued: auto accidents; slips, trips, and falls in your home; dog bites. The possibilities are endless.
When you’re sued, your liability coverage will pay up to your policy limits. But in today’s world of big lawsuits and bigger awards, that might not be enough to cover you. Even if you think the accident wasn’t that bad or a person’s injuries or damage are minimal. Whatever your insurance doesn’t pay, you have to pay out of pocket. Unless you have umbrella insurance.
Protect Your Assets
If you lose a lawsuit and the award is higher than your liability coverage, the rest needs to come from somewhere. Your personal assets could be in jeopardy. Here’s a quick way to determine if you need umbrella insurance: consider the total value of your personal assets.
Add up the current worth of all your assets: your home, vehicles, business, estimated future salary, any high value possessions (think boats, RVs, collectibles), personal investments, retirement investments, and what’s actually in your bank account(s). If the total of all your assets is more than your liability coverage, you need an umbrella insurance policy.
Who Most Needs an Umbrella Insurance Policy?
Still not convinced you need an umbrella insurance policy? Consider if you fall into any of the categories of people most likely to be involved in accidents and/or most likely to be sued:
- You have significant savings or assets.
- You want to protect against the potential loss of future income.
- You’re a business owner.
- Your home has a swimming pool and/or trampoline.
- You own your own home and/or own investment properties.
- You own certain breeds of dogs considered to be dangerous or prone to bite.
- You engage in activities that lead to possible injury like hunting, surfing, skiing, and more.
- You coach youth sports or other activities where you’re responsible for other people who may be injured.
If you’re perceived to be responsible for harm caused or to have assets that could be used to justify a big claim, you’re vulnerable to lawsuits. An umbrella insurance policy protects you against serious financial loss.
The cost of an umbrella insurance policy is minimal compared to other liability coverage and will save you a fortune if you lose a lawsuit. Contact Charlotte Insurance today to learn more about your coverage options and to receive a free estimate for your new umbrella policy.