Do You Need An Umbrella Policy?

By Allen Flatt Ballidis & Leslie on January 19, 2018

For most families it would be financially devastating to experience a lawsuit following an automobile accident. If you’d like to protect your assets, an umbrella policy could provide the extra coverage that you need. What does an umbrella policy cover?

An umbrella policy provides additional liability protection. If somebody sues you, this policy picks up where your homeowner’s or a car insurance coverage leaves off. Coverage may include everything from legal fees to the settlement amounts associated with a lawsuit.

Umbrella insurance also covers litigation prompted by rental property incidents, malicious prosecution or false arrests, defamation of character and damages for pain and suffering.

Many umbrella policies are for liability situations only and can cover your personal assets. However since many people are not carrying enough insurance to cover one’s damages, you can also search for an umbrella policy that covers underinsured motorist claims. In this scenario, if you were struck by a vehicle or had an injury caused by either somebody who is uninsured or was underinsured, your umbrella policy could provide additional benefits. Our experienced team of attorneys at Allen Flatt Ballidis & Leslie highly recommends searching for an umbrella policy that covers not only liability, but the one that would include uninsured/underinsured motorist as well.

Who Actually Needs Extra Coverage?

If you’re worried about keeping your existing net worth and future earnings secure, it might be worth looking into an umbrella policy. People with substantial assets often set up umbrella liability insurance to insulate themselves in the event of a lawsuit, but wealthy policyholders aren’t the only ones at risk. If you don’t have significant assets, the court can target your future earnings to pay off damages.

Umbrella policy premiums are relative inexpensive compared to what it would cost to have your assets drained. But the more you have to safeguard, the larger the policy you may need. In our experience most umbrella policies are less than $500.00 annually.

To discover how much coverage you need, first we recommend you evaluate all savings, retirement accounts and physical property. Next calculate the potential loss of income and what it might be in the future. Finally, add all these figures together to get an idea of your potential coverage amount.

No matter how much you have or don’t have from a net worth perspective, an umbrella policy can help you preserve your current and future wealth.

Our experienced personal injury attorneys at Allen Flatt Ballidis & Leslie provide reliable legal representation you may need to protect your rights and we can advise you whether or not an accident may warrant legal action. We offer a free consultation, so call us at 949-752-7474 to schedule your free consultation today.