Umbrella insurance is a secondary policy covering your personal liability above and beyond the limits of standard auto and home liability. It can cover you on multiple properties and cars depending on what coverage you select. Your New Mexico insurance agency can add this liability protection for lawsuits and claims that arise against you. It’s a great way to protect your financial future or established assets, especially coming into the holiday season when you are likely to be purchasing or receiving some expensive gifts.
Personal Umbrella Insurance Coverage
Personal umbrella insurance kicks in when your base policy liability limit is not enough. Umbrella liability insurance can protect you from:
- Litigation arising from property damage, injury
- Associated legal defense costs if you get sued for damages to other people’s property or injuries.
Today, lawsuits can be frequent, and lawyers are awarding larger amounts of money than ever. Liability insurance is the portion of a homeowners or auto policy that pays for expenses such as an injured person’s medical bills, rehabilitation or therapy, and lost wages. Homeowners, auto, and watercraft policies have a limit on liability insurance.
The liability portion of an insurance policy also covers a legal defense. After adding all of the medical expenses for the injured and the legal fees, the standard liability in one’s homeowners or auto policy is not sufficient.
How Much Umbrella Insurance is Needed?
If an accident occurs that is your fault, do you have enough liability insurance from your current policies to cover your costs for negligence? Since no one can predict how much a judge may award an injured individual, umbrella insurance is not just for the wealthy anymore, but a needed protection for every policyholder.
Deciding how much coverage is needed is based on your personal situation. It helps to have an understanding of what you stand to lose, and the risks you face. The following should be considered:
- What is the value of your assets?
- What is your potential loss from future income, should it be seized to pay a lawsuit?
- What risks do you think you might face?
Who Can Benefit from Umbrella Insurance?
The answer is simple: anyone with established assets stand to lose significant amounts of money in a lawsuit. If you get sued you could lose any assets you have built up, including investments and all of your savings. However, anyone who has potential future earnings or assets may also be at risk.
In a litigious society everything is up for grabs, including your savings, your investments, and the potential for assets. Even without much money or assets don’t assume a court will not award benefits to the third party if you’re held liable for damages. It is crucial that you speak with your New Mexico insurance agency to learn how to be protected. Even without assets, you may be obligated to pay off the damages awarded with your future earnings. If you are a student, or even if you expect to eventually be promoted and work your way up to a high paying position, your future earnings can be targeted.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that people like you face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.