One of the main goals of our blog is to provide people with quick access to useful legal information. Probably one of the most common tips that I give people related to insurance is to strongly consider purchasing an umbrella policy to protect you and your family in the event of a severe car crash. An umbrella policy provides insurance coverage that is in excess of a person’s automobile and/or homeowners insurance. I typically see umbrella policies provide coverage in the amount of $1 million or more. In the event that you or someone covered under your policy causes a severe car crash, an umbrella policy would provide you with significant insurance money to cover the damages caused and will likely protect your personal assets. Remember that if the damages suffered by the other party exceed the amount of insurance coverage that you have purchased, you can be held personally liable for the excess damages.
In the event that you are considering purchasing an umbrella policy, I strongly encourage you to make sure that the coverage applies to uninsured/underinsured motorist situations. Uninsured/Underinsured motorists coverage applies when the person who causes the crash does not have insurance or does not have adequate insurance to cover the damages caused to the victim. In the event that you or a family member is severely injured in a crash caused by another driver, you can potentially tap into your own insurance policy to recover compensation for the damages. Some insurance companies sell umbrella policies that do not provide uninsured/underinsured coverage. Make sure to specifically address this with your insurance agent as this coverage is very important for your own protection. Having good uninsured/underinsured motorist coverage protects you in the event that you are injured by a negligent driver with inadequate insurance.