An Umbrella Insurance policy is coverage that (among other things) provides an additional layer of liability protection over your auto policy, homeowner policy, rental property policy or even boat policy. For example your auto policy says that in the event of an accident they agree to pay, for instance, up to $500,000 in damages for bodily injury. With an umbrella policy the umbrella carrier will pay up to an additional $1,000,000 (or more) if needed.
Do I need an Umbrella Policy? How likely are you to be sued? And for how much. The answer to this question depends on the public’s perception of your wealth. If you drive a very expensive car and live in a nice house, you may be mortgaged to the teeth and teetering on the edge of bankruptcy but the public’s perception is that you are wealthy. In the event of an auto accident or other liability loss you are, because of this perception, more likely to be sued than someone who lives more modestly. When you are sued, again because of perception, it will be for a lot of money. Someone is going to have to pay for the loss and your defense. This is where you will be glad you purchased that umbrella policy.
Remember, it is not what you have but what the public perceives you have that may raise the need for the additional liability insurance found in an umbrella. For more information or a no-obligation quote, contact AIS at (888) 772-4247 or visit us online at aisinsurance.com.