Auto lenders and mortgage companies don’t require insurance to protect you, they require it to protect themselves and their investments. If you own a car, you have Auto Liability Insurance. If you own a home with a mortgage, you have Homeowners Insurance including Liability Coverage. Most people believe that they are well protected by carrying both homeowners and auto insurance…but I’m here to tell you, from personal experience, it is sometimes not enough.
What is an umbrella policy?
This type of insurance policy helps protect you from major claims and lawsuits. Umbrella insurance is extra liability insurance that can provide coverage for injuries, damage to property and personal liability situations.
Real Client Story:
Accidents happen and people always think, “Oh, that will never happen to me”, but let me share a few real life examples to show you that only having homeowners and auto insurance is not enough. Our client was making a left-hand turn and didn’t see an oncoming motorcycle until it was too late. The motorcyclist sustained serious injuries and our client was sued for $1.25 million. Another client di
d not stop in time at a traffic light and rear ended the car ahead causing them to go into oncoming traffic. The one passenger was severely injured and the other was killed. Our client was sued by the injured parties and lost. This incident paid out at $1.5 million. Imagine your dog, who is incredibly friendly, biting a repair man in your home. The bite punctures his hand leaving him partially disabled. This claim may easily exceed a standard homeowners liability policy.
I have been in the insurance industry for nine years and I have seen many claims brought against our clients over that time. However, the incidents I just mentioned all occurred in the last two years. While these might seem like extreme cases, and we never want to think about them happening to us, you can protect yourself by carrying a personal umbrella policy. This policy provides coverage’s that go above and beyond the limits of your home and auto insurance policies.
Depending on your circumstances, a $1 million personal umbrella policy can run as low as $150 a year*. Besides the extra liability protection, a personal umbrella policy provides you with protection for situations not usually covered by your homeowners policy, such as libel, slander, wrongful eviction and invasion of privacy. As social media and technology are increasingly infiltrating our everyday world, these extra coverage’s are essential.
As I mentioned earlier, auto lenders and home lenders require you to carry insurance. They do not require insurance to protect YOU, they require it to protect THEMSELVES. It’s time you think about protecting yourself too.
Contact Gunn-Mowery for more information about an umbrella policy.
*WEA Property and Casualty Insurance Company