Umbrella Insurance, the Most Important and Least Expensive Liability Insurance
If you do not have umbrella insurance, chances are you have the average vehicle policy coverage liability limits – $100,000/$300,000.
Those figures represent the limits of your insurance protection for damages resulting from injuries you cause to others in an accident. However, if the damages exceed $100,000 per person or $300,000 per accident for all persons injured in the accident, you must pay the excess.
Umbrella Insurance Coverage
A standard umbrella policy covers all vehicles on your policy and your home for injuries caused to guests or visitors on your property. An umbrella policy can also cover libel or slander claims. For instance, posting a bad review or social media comment. The coverage may include protection from malicious prosecution claims and overseas travels. Importantly, the policy limits begin at $1,000,000,00 and average only $230 annually.
Consequences of Inadequate Insurance Coverage
A few years ago, I represented a client whose neighbor’s child tripped on a Play Station cord while visiting his home and struck her head on a table. Tragically, the child suffered brain damage. However, my client had only $100,000 liability coverage on his home. Consequently, nearly everything my client earned over 20 years on the job was lost.
Another client came to my office to discuss an accident. She was stopped at dusk at a stop sign in Park Ridge, Illinois. This suburb has few street lights and short concrete posts for street signs. Moreover, while inching forward to see the street name, she did not notice an older woman who stepped off the curb simultaneously. As a result, my client bumped the woman who fell and struck her head on the sidewalk. The woman died that evening. However, my client had a 100/300 policy and approximately $600,000 in net worth. There was nothing we could do to protect her savings or the equity in her family home.
The Other Drivers
Consider the flip side of not having adequate coverage – the thousands of uninsured or underinsured drivers you drive alongside daily. You must protect yourself from damages another driver with too little or no insurance might cause you or someone in your household.
Whether it is your home or vehicle, the time to ensure you are adequately protected is now – before you drive again or invite a guest into your home.
Contact Tuohy Law Offices today for further legal advice and help find the right umbrella insurance coverage.
You might consider reviewing this asset protection strategy of securing adequate Umbrella Insurance coverage. Doing so will ensure your home, auto, and family’s financial security.
Tom Tuohy is the founder of Tuohy Law Offices.
This blog entry is created for information purposes. Therefore, it is not legal advice. Please do not use this blog as legal advice, which turns on specific facts and laws in specific jurisdictions. No reader of this blog should act or refrain from acting based on any information included in or accessible through this blog without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the reader’s state, country or other appropriate licensing jurisdiction.