An Umbrella Insurance Policy Can Keep Your Nest Egg Whole!
A nice chunk of money in your retirement account may make you feel at ease for your future, but that may not be the case. Getting hit with a liability lawsuit in your retirement years could turn your life upside down. While your insurance may cover some damages or legal fees, an umbrella insurance plan goes further. It protects you and your assets if you are held liable for a claim exceeding the coverage of your other insurance policies. Without such coverage, your assets could be in trouble.
Umbrella insurance is liability coverage that goes above and beyond what your homeowners, renters and auto insurance policies provide. Umbrella coverage has higher limits with a broader range of coverage, including claims involving bodily injury, property damage and issues such as libel, slander and defamation of character.
If you’re sued or found liable for damages, umbrella policies will pay not only the monetary damage costs, but also attorney fees and other court costs. Having such coverage can prevent another party from going after your assets if damages and legal costs exceed the limits of your regular policy.
For example, if you’re five years into retirement and you get into an auto accident. Your car is just a little banged up, but the other driver and his passengers are seriously injured. You’re hit with a claim of $1.5 million, but your liability auto insurance only covers $100,000. If you don’t have an umbrella policy extending your coverage, you’ll be responsible for $1.4 million. If you don’t have that kind of cash on hand, your assets will be seized.
Typical umbrella policies start at $1 million in coverage and are sold in million-dollar coverage increments. You’ll usually need to carry minimum underlying liability coverage on your homeowners or renters policy before you can buy umbrella insurance. Umbrella Insurance is often purchased at a low cost to you, but will provide enough coverage to where you shouldn’t have to worry about liability costs in the future. Contact BB Insurance Marketing, Inc. today for more information on umbrella policies and get a free online quote!