Standard liability coverage for home, auto, and other possessions are vital to have, but will only take you so far. Excess personal liability insurance, sometimes referred to as an umbrella insurance policy, offers coverage beyond the bounds and limits of your standard liability coverage. It may actually be the most important type of coverage many New Jersey families often overlook.
What Does Personal Umbrella Insurance Do?
What most people are interested in when it comes to personal umbrella insurance coverage is the fact that it kicks in providing liability coverage when other liability coverage has been exhausted.
Considering that the standard liability coverage for homeowner’s insurance and auto insurance has coverage limits, this can be significant as you are responsible to pay any judgments above and beyond your insurance limits.
But that’s not all a personal umbrella policy covers. It also extends coverage to things that aren’t covered by traditional liability insurance, such as providing for legal fees and awards on claims of defamation of character, libel, or slander. Umbrella coverage also provides for legal defense costs that go above what your standard policy pays too.
Why Do You Need Umbrella Coverage?
Umbrella insurance coverage is increasingly necessary as the world becomes more litigious. Chances are good that no matter how careful you are as a driver or how well you maintain your home, you may face, at any given time, a lawsuit due to injury in which you are accused of being at fault.
Whether you’re innocent or not, you must still defend yourself against these claims or make a settlement to end the claims. Both processes take time and cost money. A lot of money. Legal fees alone could easily bankrupt a family even if no judgment is awarded.
For the little things, this might be enough. Imagine if you had a chain-reaction accident in which you are not only involved, but the first vehicle involved. While it’s true that these accidents are often the fault of multiple parties, the attorney of almost everyone involved in the chain will file suit against the first car and all other cars (not to mention each injured passenger in all of those other cars) in front of or behind you. This means you could have legal fees associated with each car in the chain – whether you’re ultimately found at fault or not.
It won’t take long to max out the extent of your initial liability coverage at this rate. That’s why adequate personal umbrella insurance is so crucial for all New Jersey residents.
Who Needs Umbrella Insurance?
Whether you’re just getting started in life, approaching your retirement, or are raising a family, you need umbrella insurance. This invaluable coverage provides an extra layer of defense for your family against having your property, retirement savings, or kids college funds seized in order to pay off judgments against you in the event of an accident or injury caused on or by your property.
Why Buy Personal Umbrella Insurance from Otterstedt Insurance Agency?
Otterstedt Insurance Agency brings more than 100 years of experienced service in the New Jersey insurance industry to work for you. New Jersey is our home and you are our neighbors. We understand the type of people who make this state great as well as the insurance needs that are unique to the area. It is our passion to make sure you have the right kind of protection to protect your assets.