1844 Iron Street Bellingham, WA. 98225
Umbrella Coverage: Why YOU Need it!
An Umbrella policy provides additional liability coverage over the limits on your other insurance policies (home, auto, boat…etc.). Legal liability is created when you or a family member do something that injures or damages another person or their property. Many people assume they are not wealthy enough to need one or do not have enough assets to warrant an Umbrella policy. The truth is you need one if you have a job, or a minor in the household or if you simply have assets of value. Not only is it important to have an Umbrella policy, but it is equally important that the policy limits are adequate!
When you are sued, you have to defend yourself and you are responsible for paying any judgment against you. If the judgment awarded against you exceeds your coverage limits, most of your assets are at risk, which can include your home, auto, bank account, some retirement accounts, future wages and any other owned assets of value.
It only takes one innocent mistake, one misstep, one glance away, one accident to end up in this kind of situation. Below are real life examples of claims, demonstrating inadequate coverage. Some of them only provide THE JUDGMENT, not necessarily the amount that the Umbrella paid out. Too often we see people with too low of limits:
Remember: Even if the lawsuit against you is judged to be without merit, it still can cost you money to defend the lawsuit. You need to be adequately insured and an adequate Umbrella policy does just that.
Not everyone needs the same limits either, that is why we recommend you give us a call for a comprehensive risk review even if you have some insurance policies elsewhere!