Many people will not need umbrella insurance; however, if you own a piece of land, a home of your own, a business or some other reasonable sized asset, the umbrella insurance policy will be one of your most significant forms of protection. Imagine what would happen if someone approaches your front door, invited or not, and they end up falling, what do you suppose will happen next? A minor bruise would probably end right there, but what if they end up in the hospital with the possibility of an extended stay, will your homeowner’s insurance cover them? What sort of coverage do you think you will need?
Is Umbrella Insurance for You
The fact that you live in a society where more than 50 percent of the population believes that they have a right to sue for the smallest of reasons, even if it was an accident, makes an umbrella insurance policy a necessary tool. Keep in mind that if you don’t own much, there is not much that a lawsuit can provide. Even if you have adequate coverage on your automobile, watercraft, and home, there is just so far that those policies will go and the deeper your pockets appear, the harder the lawyers will come after you.
What Do You Get
Most homeowners are under the impression that if they offer $50,000 in liability coverage, they are all set. All it takes is one court appearance and an excellent lawyer to turn your liability into a million or more in damages. Unfortunately, juries seem to be on the side of litigants which merely means that if you have it in assets, property, cash or otherwise, the board will award it to the Plaintiff. Umbrella insurance policies will generally cover the insured from one to five million dollars, and then there are the legal fees which an umbrella policy will also include.
Making a Claim
The average individual would prefer not to have to submit a claim against their insurance company for fear of having their rates increased. In the case of a lawsuit, the moment you have been served; you should immediately contact both the insurance companies that provide you coverage. If you are carrying more than one policy and the companies are different, they should both be notified. The earlier they are informed, the more significant opportunity they will have to solve the problem before it reaches the courtroom. If the plaintiff is not prepared to consider a settlement or an amount cannot be reached, a proper defense will also need to be found.
Denial Of Service
As important as your umbrella insurance will be to you the last thing you need is for the company to deny your claim when you need it. Before taking out an umbrella policy, you should make sure that the company you intend to deal with has a good track record. Check the better business bureau, the local insurance department and even obtaining a few references might make the decision a little easier. The last thing two legal cases in front of you, one where you are the defendant and one where you are the plaintiff.