Because I’m a personal injury attorney in New Port Richey, people often ask me whether they should purchase an umbrella insurance policy to protect themselves from liability and to protect their assets.
Umbrella coverage provides an additional layer of liability protection above your home, auto and boat liability coverage limits.
If the limit on one of these policies is exhausted by a significant claim against you, the umbrella policy will kick in and provide a second layer of liability protection of $1,000,000 or more. This can be extremely important coverage if your total assets are worth more than the limits on your liability coverages.
For example, your daughter is driving one of your vehicles, gets distracted and causes a terrible car accident in which the people in the other vehicle are severely injured. Your auto liability limits are $100,000 per individual and $300,000.00 per occurrence. The injured people file a claim against you and your daughter with injury damages of $800,000, far beyond the limit of your auto insurance policy. If you have an umbrella policy, it will cover the additional liability, instead of that money coming out of your pocket.
A second example, you test your chef skills by attempting to make flambé. Unfortunately, it does not go well and you accidentally set your kitchen on fire. The fire quickly spreads and engulfs your roof, but it’s not done there. Embers from the fire blow on to your neighbor’s house causing it to catch fire as well. Their damages exceed the 100,000/300,000 in liability coverage you have on your homeowner’s insurance policy. Your personal umbrella policy comes to the rescue in this scenario too.
Finally, your usually sweet Great Dane is hanging out with you in the front yard when he sees your neighbor’s daughter, Jessica holding a cheeseburger in her right hand and a bag of fries in her left. He cannot resist the juicy burger, lunges at Jessica and grabs both the burger and her hand in one impulsive bite!
Jessica’s hand and forearm are badly mangled, and she requires multiple reconstructive surgeries. The cost of these surgeries and other medical care far exceed the liability limits of your homeowner’s insurance policy which are $100,000 per individual, $300,000 per occurrence. Your personal umbrella policy will protect you and your assets under this circumstance as well.
Umbrella policies are very inexpensive considering the amount of coverage you get compared to the premiums paid. So, for peace of mind if that rainy day comes, I suggest buying an umbrella policy.
If you want a personal injury attorney in New Port Richey, Trinity, Spring Hill, Brooksville or Inverness, who will get you the compensation you deserve, contact the Law Office of Charles S. Philips.