How higher liability limits can protect you from catastrophe.
A personal umbrella liability policy provides additional protection above and beyond what your automobile and homeowners insurance policies provide. An umbrella policy “kicks in” after the limits of liability of your underlying, or primary policies (auto and homeowners) have been exhausted. The umbrella policy can provide extra protection for preserving your personal assets in the event of a major liability loss.
How you could be at risk:
Car accident involving multiple cars
If you’re ever at-fault for a major accident that could involve several cars with multiple passengers, your primary auto policy may not provide enough coverage. If your auto policy is exhausted, you could be responsible for the any damages or medical bills not picked up by your auto policy.
It is also important to know that if you are injured in an auto accident with an uninsured or underinsured driver and your medical bills and injuries exceed your primary auto policy limits, an Umbrella Policy would be able to extend you additional coverage.
Entertaining at home
If you have a swimming pool, trampoline, or playground equipment and someone suffers an injury while utilizing one of these items, you could be held responsible for medical bills or even bodily injury liability. Your primary homeowner insurance policy offers a certain limit of liability protection, and an Umbrella Policy would provide you extended coverage
Social media review
You just dined at a local restaurant for the first time, and you were not impressed with the food or service. As a part of the community, you feel you should share your experience so it can be of value to someone else. You post a review online for the restaurant. Things turn sour, and the restaurant sues you for loss of business and damaged reputation. If your homeowners policy is endorsed to cover Personal Injury, then your Umbrella Policy would extend coverage over your primary homeowners policy.
Contact Hoffman Brown Company. They are happy to assist with a policy review.