Personal Umbrella Policy

In the event that someone is injured on your property and you are found legally responsible, you could be faced with a costly financial burden. In fact, without a personal umbrella liability insurance policy, any expenses beyond the limits of your standard policy are your responsibility. This applies to your homeowners, renters, automobile and watercraft insurance policies. You risk the equity in your home, your retirement plans, savings accounts, investments and even your monthly pay check.

A personal umbrella liability insurance policy provides an extra layer of liability protection over your personal assets for when your standard liability coverage is exhausted. It is very important to remember you must still keep your standard insurance policies. As an example you have to have car insurance usually with liability limits of 250/500/100 or $500,000 combined single limits and then your umbrella kicks in after that.

Why is a personal umbrella liability policy important? It works to fill the gaps in your coverage and provides the following benefits:

Think of a person age 35 years old. They earn $30,000 a year. You have hurt them and they can no longer work. It is 30 years until they are 65 so you owe them $30,000 for 30 years equals $900,000. Plus inflation, minus the time value of the payments, plus pain, suffering, etc... so close to $2,000,000 or more. What if they were younger, or made more money a year? It just gets worse.

How much coverage do you need? Take into consideration your total personal assets and your potential for personal risks when determining how much coverage you need. Let your GDI insurance broker, working with your CPA and Attorney or financial advisor help you figure this out.

A wide range of factors, such as whether you have hired help, if you have teen drivers at home or if you operate your business out of your home, will determine how much coverage is appropriate for your circumstances.

What are the policy limits? A $1 million is the start. But limits up to $5mil, $10, $25, $50 or $100 million are available.

Contact us today to determine how much coverage is right for you.