Life happens. That’s why you buy liability insurance to protect your finances if you cause injury or property damage to others.
Unfortunately, some incidents exceed the liability limits of your existing insurance policies. When this happens, you need umbrella insurance to safeguard your family from financial ruin.
Below, we discuss the benefits of purchasing umbrella insurance. If you have any questions, contact the insurance experts at H. Dean Allison Insurance.
Umbrella insurance, also called personal liability insurance, is a policy that protects your savings and other assets.
If you are sued for damages above the liability limits of your car insurance, homeowners insurance, or other policies, umbrella insurance kicks in.
Umbrella insurance can be a little confusing at first. To help you better understand its nuances, imagine this scenario:
You run a stop sign and cause a rear-end collision. The other car has been totaled, and the three passengers have suffered severe injuries.
The car needs $30,000 in repairs, and the treatment of the three passengers totals $500,000. Plus, one of the passengers is a radiation oncologist and won’t be able to work for three months. He sues you for $50,000 in lost earnings.
Alas, you are on the hook for $580,000. If you only carry $300,000 liability insurance with your car insurance, the remaining $280,000 will need to be paid out-of-pocket. But if you had umbrella insurance, the policy would pay the difference.
Umbrella insurance provides protection in two significant ways:
If you are weighing the merits of purchasing umbrella insurance in Pennsylvania, know this: Your life can change instantly. You can either be prepared or suffer the consequences.
At H. Dean Allison Insurance in Altoona, PA, we can help protect your family from the unknowns with reliable umbrella insurance. To learn more, request a free quote today.
