When you hear the term "umbrella policy," do you have a deer-in-the-headlights moment? You're not alone! However, it's vital to understand how an umbrella policy can protect your assets and future earnings because that's what's at stake in the event you were found at fault for a claim.
Client A allowed their guests to use their ATV around their property. The guest's teenage son hit a tree leaving him paralyzed from the neck down.
Client B had a party in their backyard. A guest jumped out of their second-story window aiming for their trampoline. The guest missed, suffering from major back injuries.
Client C (a high school student) was driving his girlfriend's car and had an accident where the other party sustained major injuries. The girlfriend's family did not have high enough policy limits, so the injured party also sued the driver's family even though it wasn't his car.
It’s not uncommon to hear of $1-million, $2-million, and even $10-million liability judgments against individuals. If someone is injured on your property, in your pool, or from a vehicle accident, you could be subjected to such a judgment whether or not the accident results in death.
Know this — accidents and injuries are not predictable. Nobody expects to be the subject of a lawsuit. But once you are the target of a liability lawsuit, it's too late to get coverage.
Ask yourself this question: How will you or your family support themselves if your finances are suddenly hit by a tragic accident in which you were held responsible for damages or bodily injuries?
How an Umbrella Policy Works
An umbrella policy protects your finances from expensive lawsuits or other covered events. If your homeowner's or auto policy does not have high enough limits to cover the claim, then your umbrella policy will take over when your other policy reaches its limits.
Umbrella policies are relatively inexpensive. Most insurance companies offer a personal catastrophe liability (PCL) policy that adds an extra $1 to $5 million to liability limits for about $200 more per year. And, you can bundle an umbrella with your auto and/or home for better savings.
Ask Us About an Umbrella Policy Today
Contact Connecticut Insurance Exchange today (860) 666-5442 to see how an umbrella policy can protect your family, your assets, and your future finances.