Sometimes, a standard homeowners or auto insurance policy will fully settle a covered liability claim against you. In other scenarios, the claim could be so big that you may be forced to pay some bills out of pocket. It is always safer to watch out for any glaring coverage gaps, including when you have the maximum coverage possible under your standard home or auto insurance policy.
Fortunately, you can reasonably extend your liability protection with umbrella insurance.
Here are five signs that you need umbrella insurance for coverage beyond your basic insurance policies:
You Often Host House Parties
Even meticulously planned get-togethers at your home can open you up to costly liabilities. One of the most disturbing issues is the risk of injury, which gets extremely high when you serve alcohol at a house party. Imagine a scenario where one of your guests has had too much to drink and accidentally trips and falls on the steps to your porch.
If they seriously hurt their head or broke a leg, they could sue you for their medical bills, lost wages, and even pain and suffering. If your homeowners insurance limits couldn’t pay for some of these costs, umbrella insurance would cover the deficit.
You Own a Pet
Did you know that dogs bite millions of people every year? These pets are supposed to be loyal companions (which they are most of the time), but they sometimes attack strangers and can put you in legal trouble. If you own a pet, it is important to consider increasing your liability protection in case you’re held liable for dog bite injuries.
Your home insurance will cover your liability expenses, including legal and hospital bills, up to a certain limit. An umbrella policy covers any damage claim above your existing limit.
You Have an In-ground Swimming Pool at Home
Isn’t it ironic that some of the most bothersome liability risks that homeowners face are associated with the things that bring joy to families and friends? Take the example of a swimming pool on your property. A drowning accident could result in an expensive lawsuit against you. You don’t have to stop being hospitable or letting guests enjoy your pool to avoid this risk. As you implement adequate safety measures on your property, consider getting an umbrella policy to increase your liability protection.
Your Teen Child Just Got Their Driver’s License
If you’re letting your teenage daughter or son drive your car, it is important that you get coverage for the extra liability you’re assuming. Numerous studies show that teenage drivers are more likely to get involved in a car accident than adults. In certain scenarios, the limits on your auto liability policy may not be enough. With umbrella insurance, you’re protected from excess injury and property liability claims for which your teen driver may be liable.
You’re Wealthy
When you’re facing all these liability risks day-to-day, you’ll want to protect your assets against garnishment by court. Your salary, lifetime savings, home, and investments like stocks or real estate are at stake if you don’t have sufficient liability protection. These personal assets could be seized to pay for injury claims against you if you’re underinsured. Get umbrella insurance to protect your tangible and liquid assets fully.
Having umbrella insurance gives you extra liability protection and peace of mind if you ever got sued in any of these or similar circumstances. To discuss your unique requirements for this additional coverage, contact our experts at The Reardon Agency today. We’re happy to help customize your personal liability safety net.
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