If you are at fault in an accident that caused death or injury, you could have civil action taken against you. Automobile liability insurance is a way to protect yourself against this type of action and protect your financial future. Even something as enjoyable as a swimming pool can mean you need more insurance coverage, because it is a risk to others.
Liability coverage such as this can be found through an umbrella policy that is specially designed to take care of legal costs that are higher than your liability limits. This supplemental coverage is normally above and beyond property damage and personal injury costs, which can help cover the huge financial outlay that comes with civil actions and court costs.
Benefits of Umbrella Coverage
An accident that you are found responsible for can lead to a civil lawsuit. Your traditional insurance policy will not cover the court fees or a settlement, but umbrella coverage can expand your coverage to help cover the costs and keep your financial future solid.
If you are named in a civil suit, your property can be lost, too. Umbrella insurance will protect this investment. If you are the owner of a large amount of real estate or have a large investment portfolio, you can be in danger. Even if you own a single-family home, you need this umbrella coverage.
From $500,000 to up to $10M, umbrella insurance policies can vary in the amount of coverage. After your liability coverage pays, this coverage kicks in to protect your financial future. Additionally, it will protect you against libel and slander.