Could you be sued? Anyone can be sued, regardless of their net worth, for just about any reason. If you are held legally liable, economic damages may be assessed against you for the plaintiff’s medical bills and expenses, lost wages as well as large rewards for pain and suffering and distress.
How does an Umbrella policy protect me? It provides coverage for injuries, property damage to others, & certain lawsuits, by providing additional liability coverage above the limits on your Homeowners, Auto, Rental, or Boat Insurance policies. The protection “kicks in” when the liability limits on those other policies have been exhausted.
There are various types of contracts, the two most common are:
Excess policies: which mean if it was a covered loss under the primary policy and those limits are exhausted, the extra limits on the Excess Liability Policy “kick in” on top.
True Umbrella policies: which do the same as the excess policy, but could have some coverage for things that might be excluded in your primary policies such as Slander, Libel, False arrest, and other personal liability situations.
Some examples of coverage provided and how the Umbrella policy would protect you:
Bodily Injury Liability – covers the cost of damage to another person’s body. Medical expenses and or liability claims as a result of:
• Injury to someone due to a serious auto accident where you are at fault
• Injuries to a guest in your home due to a fall
• Injuries sustained by your neighbors child who gets hurt on your trampoline
• Injuries to others as a result of your dog
• Swimming pool incidents
Property Damage Liability – covers the cost of loss or damage to another persons tangible property such as:
• Damage to vehicles or other property as a result of an auto accident where you were at fault
• Damage to school property caused by your child
• Damage that is done to your friends priceless oriental rug when your dog rips it to shreds
Owners of Rental Units – protects you from liability you may face as a landlord. Some examples are:
• Someone tripping over a crack in the driveway of your rental property and suing you for damages
• Your tenants dog bits someone and you are being held responsible
What is available and how much does it cost?
Most policies are written for a minimum liability limit of $1 million and can go as high as $10 million. If you own your home, have 2 cars and two drivers, your premium can start as low as $135 a year for a $1 million policy. Additional exposures such as colorful driving records, youthful drivers, swimming pools, rental properties & boats cost a bit more because of their added exposure. Umbrella policies provide great limits of protection at a very minimal cost. If you don’t already have one, you should get one, regarless of your net worth!
Contact our Carlsbad Insurance office at (760) 795-2002 or our Temecula Insurance office at (951) 296-6833 for a quote.
Please note: The above is meant as general information to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contractes of insurance. We encourage you to speak with your customer service representatives about your specific policys.