If you think that you have enough insurance, you may be surprised to learn that certain situations exceed your coverage. Some of these situations include lawsuits following an accident, others accusing you of slander or libel, or a rental tenant suing you. The costs of these lawsuits can often exceed the liability limits of your standard coverage.
That’s where an umbrella policy comes in. It is an extension of your current personal liability insurance that covers expenses like attorney’s fees, court costs and court judgments that exceed your personal liability limits.
Need more convincing? Consider a scenario where you cause a traffic accident and a judge awards the other person $1 million. Your automobile policy has a personal liability limit of $500,000, and the other $500,000 is paid by your umbrella policy. If you don’t have an umbrella policy, then the money comes out of your pocket.
Whether you have substantial assets or are just starting out, protecting them with an umbrella policy makes sense. These policies are relatively inexpensive and are available in coverage amounts to suit every income level.
For more information about how umbrella insurance can protect your assets in Illinois, please contact Reta Insurance Agency in Worth!