In the event of an injury or death due to an accident, civil action can be taken against you. This is especially true if you do not have automobile liability insurance that will cover all legal costs. A swimming pool in your yard can dictate an essential need for insurance, as you are at risk of being sued if a third party dies.
This kind of liability coverage can be found via an umbrella policy that is designed to cover legal fees that are more than your liability insurance limits. This is usually above and beyond the personal injury and property damage costs, which includes civil actions and court costs, which can run up a huge financial outlay total.
Umbrella Coverage Benefits
If you are named in a civil lawsuit due to an accident, a regular insurance policy will not cover your court costs or a settlement. Your financial accounts could be drained if you do not have an umbrella policy to help cover those costs.
You can lose your property as well if you are named in a civil suit. That is why you need to have umbrella insurance to be sure that your investment is protected. Whether you own a lot of real estate, have extensive investment portfolios, or simply live in a single-family home that you have paid for, this protection can be well worth the money.
Normally, umbrella policies are for amounts of $500,000-$1million and up to even $10M. This type of coverage normally comes in to take care of the amounts above liability.
This additional level of liability insurance can be a great way to protect your financial future against those who would file a civil lawsuit. In addition, it can protect against libel and slander.