Monthly Archives: April 2016

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Have You Considered Increasing Your Insurance Liability Limits? Think About An Umbrella.

If you own a home, own a car and a boat, you probably have insurance on all three. One thing each of these insurance policies will have in common is a liability component that protects you in the event someone is harmed by or on your property. Liability insurance is the part of your homeowners, auto or marine policy that pays for expenses such as the injured persons medical bills and lost wages and covers your legal representation if you end up in court. There is another thing these policies will have in common that you may not have considered; each policy has a limit on the liability payment. If there is an accident you will be protected only up to the limits of liability on the policy. These days, that liability limit might not be enough. If an accident was caused through your negligence, there is no way to predict how much a sympathetic judge or jury may award. You might take a moment to look over your Washington insurance policies and judge for yourself whether the limits of liability are sufficient to provide you the protection you are comfortable with. Financial advisors are now recommending that individuals who are still working have liability coverage of at least $1 million or equivalent to their net worth. If you are concerned that your limits of liability may not be enough, there is an alternative to simply raising those limits on a policy by policy basis. That alternative is a Personal Umbrella Policy (PUP). A Personal Umbrella Policy offers high limits of liability that can defend an insured against a catastrophic liability loss. PUP coverage, like an umbrella, sits on top of the primary liability coverage provided homeowners, personal auto, watercraft, and any other scheduled underlying liability policies. It covers bodily injury, property damage, and personal injury, which includes, among other things, libel, slander, false arrest and invasion of privacy. A Personal Umbrella Policy can extend your liability coverage from $1 million-$5 million. The really good news is that this form of coverage is quite affordable. Because the coverage picks up after the underlying liability coverage represented by your homeowners or auto insurance is exhausted, the pricing of these policies is commensurate with the risk. You may expect to pay only a few hundred dollars for $1 million or more of personal liability insurance. Take a few minutes to discuss your liability situation with a professional at Homer Smith Insurance. You may be able to significantly increase your liability protection very affordably.