Knowing how much insurance you need and what type of insurance you have can be a daunting prospect. If you have purchased homeowners insurance before, you may be asked if you would like to take out an umbrella policy as part of your insurance coverage. In order to get the best coverage possible and to protect yourself from any unforeseen circumstances that may not be covered under a regular policy, it may be necessary to add additional liability coverage in the form of a comprehensive insurance policy, to your car and homeowner insurance. Policies to protect you and your family.
Here’s why.
Protection from lawsuits
Kiplinger recommends that you have at least $1 million in insurance policy to provide liability coverage that exceeds auto and homeowners insurance policies, even if you have less than $1 million in assets. If someone sues you, and you do not have this umbrella policy, you may be liable to pay legal fees from current and future assets. Even if you win the case in the end, the legal fees will affect the settlement because they add up quickly. It’s wise to get liability insurance limits of your total net worth – more if you can afford it. This additional claim coverage will take care of your defense costs as well as liability coverage for lawsuits that are not covered by your car or home insurance. In a broader sense, umbrella policies provide coverage beyond your regular coverage, offering:
Liability for property damage
Ejaculation / ejaculation
Liability for bodily injury
Court and defense fees
You never know…
It is impossible to know if, when and to whom you will be injured in the future, whether through a car accident or some other scenario. Just think of this possible example: You injure a professional athlete, CEO, or physician. They may not be able to work for 10 years due to their injuries. You’ll be responsible for paying their lost wages, medical bills, and compensation for pain and suffering. Lost wages alone start at $3 million and grow from there, says Pankrat. It’s better to buy an umbrella policy now, with at least $1 million in coverage, than to leave it holding the bag for later. If something happens and you don’t have an all inclusive policy, it will be too late to add one.
Peace of mind
If you are worried about losing income and assets due to a potential lawsuit, you need a comprehensive policy. Considered a wise purchase in the insurance industry, it’s one of those things that isn’t very exciting to buy at first like a new car or a vacation, but gives you boundless peace of mind knowing if you should use it, it’s there to protect you. Plan to pay between $150 and $200 for your first $1 million coverage, then about $100 for every $1 million you add. Do you want to know more about comprehensive insurance policies? Contact us today to speak with a representative and find out how we can benefit you!