Being properly insured is important, however, carrying the right amount of liability coverage is especially critical. Liability claims can quickly spiral out of control and put your home and other assets that you worked so hard for at risk if you are not properly insured.
There are several reasons to consider putting an umbrella policy in place. Below are a few examples:
- Teen Driver in the House: If you have a teen driver living in the house you should absolutely consider an umbrella policy. While auto insurance policies offer liability coverage, it may not be enough if your teen driver is involved in a serious accident.
- House Party Gone Wrong: If you like to entertain, or you have a teen in the house that likes to have parties when you’re not around, you should definitely have an umbrella policy. If a person slips and falls in your house, drinks too much, gets behind the wheel of a car and is in an accident, you can be on the hook for both medical costs and lawsuits.
- You Have a Swimming Pool: Just like a trampoline, swimming pools are an additional danger and can lead to severe, even life-threatening injuries. While anybody can be injured in your home due to a fall or slip, a swimming pool can result in a life-changing injury such as a broken neck or death due to drowning. Severe swimming pool injuries often come with dramatic medical costs and those costs can quickly exceed a standard homeowners insurance policy. If you have a swimming pool on your property, we highly recommend you carry an umbrella policy.
- You Own a Second Home: If you own more than one home, your liability exposure goes up dramatically especially if your second home is unoccupied for much of the year and has tempting amenities like a pool, hot tub or trampoline. Uninvited guests that jump a fence and take a dip in your pool could end up hurt and unfortunately, in many cases, that liability can fall on you.
As you can see, an umbrella policy can be a financial lifesaver in numerous situations. The best news about umbrella policies is that they are extremely affordable. Umbrellas are sold in $1 million increments and typically cost approximately $250 a year.