Personal Umbrella Insurance in CA
Personal umbrella insurance is one of the more commonly overlooked types of coverage. This is a particular type of liability insurance that extends beyond the limits of your auto, homeowners, or recreational vehicle insurance.
The Importance of Personal Umbrella Insurance
Personal umbrella insurance is essential in protecting your assets if you find yourself in severe financial trouble.
Say you’re driving your car in the rain and hydroplane. You end up rear-ending the vehicle in front of you, which hits two more cars. This results in $90,000 worth of property damage.
Additionally, five people are injured in the incident, resulting in half a million dollars in medical bills. Finally, one of the injured persons decides to sue you, demanding $350,000 for emotional damages.
This single road accident has put you in roughly a million dollars worth of debt. However, your auto insurance only covers up to $500,000 worth of damages. How will you pay the other half?
That’s where umbrella insurance kicks in. Without it, you might have to drain your retirement fund, take out a loan, or refinance your mortgage to pay your legal bills and damages.
This might sound dramatic but is by no means an unrealistic situation. Every year, car accidents cost the U.S. a total of $230.6 billion.
What Umbrella Insurance Covers
Umbrella insurance excludes certain types of coverage. You can’t use it to cover damage related to floods, for instance, or contracted worker injuries. It also can’t be used in criminal acts, e.g., if you intentionally harm someone.
Here is what personal umbrella insurance does cover:
If you injure another person by accident, like that unfortunate car crash, umbrella insurance will help cover those medical expenses that exceed your existing homeowners or auto insurance policy.
Umbrella insurance also covers property damage. Note that it only covers damage to other peoples’ property; you can’t use it to claim expenses related to damage to your domicile.
If someone feels like their reputation has been wrongfully damaged, they can sue for either slander, libel, and defamation.
You could potentially face this kind of lawsuit if you make claims about a person via social media, for example. If you were to lose the case, personal umbrella insurance covers all of the damages.
Whether you’re facing a defamation lawsuit or a personal injury claim, you will inevitably have to pay some legal fees. Even just having your attorney draft a letter on your behalf costs money. Personal umbrella coverage pays these fees.
Get Your Personal Umbrella Insurance Coverage for California
Are you interested in personal umbrella insurance in California? Insurance By Castle has you covered. We are a family-run business dedicated to helping people protect themselves with the right insurance policies—without breaking the bank. You can read reviews from satisfied clients online.
Request a quote today below or call (800) 644-6443 if you have any questions.