Homeowner’s, auto, and watercraft policies have a limit on liability insurance. If an unfortunate accident should occur, and it is your fault, do you have sufficient liability coverage from your current policies to handle the related costs? Since no one can predict what amount of damages you cause an injured party, Umbrella Insurance is a type of protection important for every policyholder, not just the wealthy.

Umbrella Insurance is designed to provide additional liability protection above and beyond the limits on homeowner’s, auto, and watercraft personal insurance policies.

Liability insurance is the portion of a homeowner’s or auto policy that pays for expenses such as the injured person’s medical bills, rehabilitative therapy, and any lost wages due to the negligence of the person at fault. The liability portion of an insurance policy also provides for legal defense if such representation should become necessary. When considering all of the medical expenses required for the injured party and the legal fees incurred by the negligent individual, the standard liability coverage available through homeowner’s or auto policies is often found to be insufficient. Almost every state has financial responsibility laws that will hold drivers accountable for bodily injury and property damage resulting from car accidents, and the driver found to be at fault can be sued for these damages. Personal assets of the driver at fault could also be seized as part of the resulting lawsuit. Similar laws are also in force for home and watercraft owners.

But there is good news. A personal liability umbrella insurance policy can give one added liability protection at a reasonable cost. Additional liability insurance is often inexpensive, particularly when weighed against the additional coverage that one gains. Furthermore, liability insurance covers one’s non-business activities anywhere in the world. These days, the added protection provided by a liability umbrella policy is something that no one should be without.