top of page

Keep Your Umbrella Handy

Umbrella liability insurance is designed to put an extra layer of protection between your assets and a potential lawsuit. It provides coverage over and above existing automobile and homeowners insurance limits.


For example, imagine your teenage son borrows your car and gets in an accident, seriously injuring the other driver. The accident resulted in a lawsuit and a $1 Million judgment against you. If your car insurance policy has a liability limit of $500,000, that much should be covered. If you have additional umbrella liability coverage, your policy can be designed

d to kick in and cover the rest. Without umbrella coverage, you may be responsible for paying out of pocket for the other $500,000, which could mean liquidating assets, losing the equity in your home, or even having your wages garnished.


Umbrella liability insurance is usually sold in increments of $1 million and generally costs just a few hundred dollars a year. It typically covers a broad range of scenarios, including bodily injuries, property damage caused by you or a member of your household, and even libel, slander, false arrest, and defamation of character.


Deciding whether liability coverage is right for you may be a question of lifestyle. You might consider buying a policy if you:

  • Entertain frequently and serve your guests alcohol

  • Operate a business out of your home

  • Give interviews that may be published

  • Drive a lot of miles or have teenage drivers

  • Live in a manner that gives the appearance of wealth

  • Have a dog, especially if the breed is known to be aggressive

  • Own jet skis, a boat, motorcycles, or snowmobiles


You don’t have to be a millionaire to be sued for a million dollars. Anyone who is carefully building a financial portfolio may want to limit their risk exposure. Umbrella liability can be a fairly inexpensive way to help shelter current assets and future income from the unexpected.


We can customize an umbrella policy that is right for you. Schedule a time to discuss your options or call 914-696-1000.

5 views0 comments

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page