Is your umbrella policy large enough? Lawsuit settlements and jury awards are skyrocketing, so it’s a great time to review your umbrella policy limits, particularly if you entertain frequently, have a swimming pool, dogs, rental properties, or teen drivers in your household.
An often-asked question is, “How high should I increase my umbrella limits?”
If you have significant assets to protect, your homeowners and auto insurance policies may not offer the high limits you need.
Umbrella insurance, a type of excess liability coverage, offers a solution. In addition to your auto and homeowners insurance policies, you can purchase an umbrella insurance policy. If you are sued for an amount that exceeds the caps on your homeowners or auto insurance policy, your umbrella coverage will kick in.
The Threat of Lawsuits
There are many reasons you could be sued. For example:
- A guest is injured on your property.
- A child enters your property without your permission or knowledge and is injured.
- Your dog bites someone.
- You cause a car crash.
- You post a negative review and are accused of defamation.
When a lawsuit occurs, it can be for millions of dollars. According to CBS, a Manhattan woman was sued for $1 million plus legal costs after posting a negative review of a local doctor, and according to the Journal Inquirer, dog owners agreed to pay $2 million after their dog attacked and killed an elderly woman.
Forbes says that more than 40 million lawsuits are filed each year. If you lose a lawsuit, you will have to disclose all of your assets, and you could end up losing your home, vehicles, savings, and any other assets you possess.
High net worth individuals may be targeted with lawsuits seeking large sums because of their “deep pockets.” The excess liability coverage provided by umbrella insurance can help shield you from this risk.
Are you interested in protecting your assets against a multimillion-dollar lawsuit? Contact us to learn more about umbrella insurance coverage or to review your existing coverage.