Have you ever wondered if your insurance liability limits are sufficient to protect your assets and future earnings in the event of a lawsuit? With the record number of lawsuits filed each year, the Townsend Insurance Group highly recommends that each of our clients look into a Personal Excess Liability (Umbrella) policy. This type of policy is an extra layer of liability coverage above and beyond your automobile, homeowners, motorcycle, or boat policy designed to protect you in the event you are liable for someone’s injuries or damages, and your primary policy’s limit runs out. This type of policy offers additional protection usually in the amount of a million dollars or more.

Certain exposures, such as swimming pools, trampolines, or inexperienced drivers make a very compelling case to add an umbrella policy. What’s more is that this coverage can often be added for a very reasonable price.

While it may seem a bit over the top, the case study below offers an example of why such coverage is recommended.

A group of high school students were partying one night when they decided to jump the neighbors fence and use their swimming pool. One of the boys dove into the pool while impaired by alcohol and broke his neck. Although the owners of the pool were not present, their homeowners’ policy paid the limit of $250,000, and their umbrella paid a full $1 million settlement.

By purchasing an umbrella policy, the pool owners were able to avoid financial ruin.  Anytime an injury occurs on your property, you could be held liable, whether it was your fault or not.

Why take the chance? Protect yourself, and your assets, with Umbrella coverage. While we hope you’ll never need to use it, you’ll be glad it’s there if you do.