Why Do I Need Personal Umbrella Liability Insurance?

Why Do I Need Personal Umbrella Liability Insurance?

Imagine yourself driving home from a hectic week at work; you’re looking forward to a relaxing weekend spent with family and friends. When you are just a few blocks from home your cell phone rings, and you glance down checking to see who is calling. In that split second you miss an approaching stop-sign. You plow into the side of a passing car resulting in a serious accident with injuries to the driver and passenger of the other vehicle. Unfortunately, you are sued and found at fault, and ordered to pay $1 million for medical expenses, lost wages, and the pain and suffering of the injured party.

Although you may have Auto Insurance, the policy limits are not likely to be $1 million. That means that unless you have another way of paying the remaining $700,000, your assets (retirement, saving, and various other accounts) will be at risk of being garnished.

However, there is something you can do to further protect yourself. Similar to how an umbrella shields you from the rain, an Umbrella Insurance policy protects you from a downpour. Even if your assets are few, Umbrella Insurance protects your income; in some settlements, wages can be garnished up to ten years.

Umbrella Insurance doesn’t only extend your limits of auto and homeowners policies; it also can cover personal injury claims, including false arrest, libel, and wrongful eviction. Dependent teenage drivers on your auto policy are also covered.

Why put your nest egg, retirement savings and other hard-earned assets at risk? Umbrella insurance is an affordable layer of protection typically starting with $1 million in coverage, with additional coverage available if your financial situation changes. Contact Midwest Insurance Group, LLC today for more information.