When it rains, it pours: umbrella insurance shields individuals from the storm.Most people have a great deal of assets, such as a secondary home, recreational vehicles, and boats. Unfortunately, we live in litigious litigious adj. referring to a person who constantly brings or prolongs legal actions, particularly when the legal maneuvers are unnecessary or unfounded. Such persons often enjoy legal battles, controversy, the courtroom, the spotlight, use the courts to punish society. Therefore, "you need to have enough liability insurance to protect all of your assets if you are sued," says Carolyn Gorman, vice president of the Insurance Information Institute. "If your net worth is $500,000, you need that much insurance, and possibly more. If you are sued and do not have enough insurance, you will be forced to sell your property to come up with the award." Umbrella insurance refers to insuring more than one property as opposed to insuring only one. For example the owner might get a discount for insuring both his house and car rather than insuring them with separate policies because it might cost more. or personal liability insurance can help shield you from the storm of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . It provides individuals with an additional layer of liability protection over and above the coverage found in a homeowner's or auto insurance policy. Liability protection provides coverage when others are injured or have sustained damage to their property for which you are responsible. In addition, "you won't have to face court alone. If you're sued over an incident covered under your personal umbrella policy Umbrella policy Insurance for exports of an exporter whose issuer handles all administrative requirements. , Allstate, for example, will retain and pay for an attorney to represent you in court," says Paul Leinheiser, personal umbrella policy product manager for Allstate Insurance Co. "Your coverage goes with you everywhere--including outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It helps with gaps in coverage." Umbrella policies also cover libel, negligence, plagiarism Using ideas, plots, text and other intellectual property developed by someone else while claiming it is your original work. , slander, and defamation of character, which are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. in standard policies according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. WomensFinance.com. To determine if you need a policy, ask yourself the following questions: What do I need to protect? What do I have to lose? What concerns do I have about my children driving? Do I entertain often at home? "Everyone who has assets to protect will benefit from an umbrella policy. You might think that only people who have substantial assets would need an umbrella policy, but that's not necessarily so. It's also essential for a person whose only assets are a home and other personal property because one lawsuit judgment can ruin a family financially," says Kip Diggs, spokesman for State Farm Insurance. Individual umbrella policies start at $1 million and can be purchased in increments of $1 million up to $10 million. Stephen McAnena, vice president and personal lines product manager for Liberty Mutual Group, says the cost for a $1 million policy varies by individual, but averages around $300. For more information, visit the Insurance Information Institute Website at www.iii.org. TOP REASONS YOU SHOULD HAVE THIS INSURANCE 1 A policy protects individuals who have considerable assets, such as second homes, RVs, boats, and pools. 2 Policies have a "duty to defend" clause requiring the insurance company to provide a lawyer and cover defense costs. 3 Policies cover slander, libel, plagiarism, and other items standard policies do not. |
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