Do you know what happens when the liability limits on your home or auto policy run out? The more assets you have the more risk you have. Once the liability limits run out on other underlying insurance, an umbrella or excess liability policy will take over and provide another layer of insurance protection for you and your family. It’s more common than you think…..
Imagine one day, you get into a car crash. Fortunately, you’re not badly hurt, and the damage to your car is well within the limits of your auto insurance coverage. Unfortunately, the other car involved in the crash is full of executives from a large company – and their injuries, and the damage to the car, are much more serious.
A court rules that you are responsible for the accident and must pay for the damage to the other car, the executives’ medical bills, and their lost wages for the time they were unable to work after the accident. Altogether, you owe about a million dollars in damages. Your auto insurance policy only covers the first $250,000 of that, so you’re on the hook for the remaining $750,000.
This kind of insurance takes over when your other policies run up against their coverage limits. In this case, an umbrella policy would cover the extra $750,000 in damages and even pay your legal bills – saving you from having your assets wiped out and your retirement snatched away by a single unfortunate accident.
Types of damage covered by an umbrella policy include the following:
We offer a wide range of products from many insurance companies and will help you secure the appropriate size umbrella or excess policy to protect your assets.
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