How Umbrella Insurance Protects You

If you don’t already own an excess liability insurance policy, it may be time to consider purchasing one: it could potentially save all your assets.

Umbrella insurance policies protect you beyond your general liability insurance for your home and auto insurance policies. This special kind of liability insurance can pay for the monetary damages arising from legal claims against you. But it can do so much more: if the lawsuit you are slapped with forces you to get a lawyer and expensive court fees, your umbrella insurance policy will certainly help you pay for the legal fees. Know how an umbrella insurance policy could protect you and your assets if you are alleged to have caused a nasty accident.

Does this sound a bit extreme? Most people say yes, and some of those people end up regretting never purchasing one. Here are a few normal scenarios with dire consequences.

  1. Let’s say you’re throwing a big party at your house where alcohol will be served. No big deal, right? Not so fast. Alcohol impairs the brain and body. If a person injures themselves on your property you are legally liable for their injury and could be sued.
  2. Your auto insurance policy includes liability insurance to cover the medical expenses and legal costs that are the result of an accident that you caused. While most states require a minimum amount of insurance, they’re usually quite low and won’t provide the necessary coverage if the accident is big enough.
  3. Do you have a pool, or a trampoline, or dog? If your current homeowners insurance policy doesn’t specifically cover these things, you could end up paying big time for these “attractive nuisances.”

Umbrella insurance covers all the gaps that your auto and home insurance may be hiding. To protect yourself from these gaps, an umbrella insurance policy is what you need. Contact Pierce Insurance Group in McKinney, Texas to get guidance to the right policy!