Your business is booming, your stocks are on the rise, your Longmont, CO custom home is almost paid off, and your daughter has received a full scholarship to an Ivy League School. Life is good. It’s too bad someone had an accident in your pool during your daughter’s graduation party. After the resulting lawsuit is settled, you find you’ve been wiped out financially and now your assents are gone and your net worth looks the national debt. How can you avoid financial ruin? One of the most effective ways to protect your assets from a costly settlement is by purchasing an umbrella insurance policy.
There are endless ways you can end up on the losing end of a catastrophic lawsuit. While these aren’t common events, they do happen often enough that if you have more to lose above and beyond your basic home or auto liability limits, you should take steps to protect yourself against large lawsuits. Here’s an overview from 1st American Insurance Agency to help you learn the basics.
What Is Umbrella Insurance?
An umbrella policy is a higher dollar insurance policy you can purchase in million dollar multiples. It is structured to kick in when home, automobile, or boat’s primary coverage is used up and gone beyond their policy limits. The policy’s sole function is to protect you against large lawsuits that result from events that lead to personal injury, bodily injury, or property damage. Additionally, most umbrella policies will also cover lawyer’s fees and other legal expenses.
Prime Risk Factors
There are some factors that are a good indication you should consider purchasing umbrella insurance, including:
- You have a pool or frequently entertain at your home.
- You allow people to stay at your vacation home without supervision.
- There is a driving teenager in your home.
- You frequently conduct business from home.
- You have a family dog.
- Boats, motorcycles, ATVs and other adult toys are on the property.
- You own rental properties.
Working with a property casualty specialist is the best way to determine what the appropriate umbrella coverage is for your unique situation. In today’s litigious society you could find yourself on the bad end of a lawsuit for a variety of reasons. Call 1st American Insurance Agency today to find out how an umbrella policy can give you some peace of mind.