Accidents can happen at any time. While you try to be responsible, if someone is hurt due to your negligence, you can be held responsible for medical costs and other damages. While your Massachusetts auto and homeowners insurance may cover some of these expenses, some accidents are so severe that these policies are not enough. With personal umbrella insurance, you can extend your liability coverage to between $1 and $5 million, to protect your finances in case of this type of event.
Umbrella insurance is a secondary insurance, to be used when your coverage from other policies runs out or does not apply. The liability limits on your Massachusetts car insurance and homeowners policies may be enough to cover typical situations, such as a slip and fall in your driveway. However, they typically cannot fully pay for a serious accident that triggers a lawsuit, with damages that can include medical treatment, lost wages, and pain and suffering. Umbrella insurance can help protect you from having to pay these costs out of pocket.
As a secondary policy, your umbrella insurance covers the same situations that your liability protection on your auto and home policies. These may include:
Umbrella insurance can help to provide additional protections for these events. This can be especially valuable if you have a pool, swing set, trampoline, or other items with a high risk of serious injury.
Umbrella policies may also cover other situations that may not be covered under your other policies, such as:
All members of your family can be covered by an umbrella policy, so if your teenager slips up and does something like causing a multi-car accident, you will may be better protected.
Homeowners insurance limits vary by policy, but are designed for common events. Many homeowners have a $300,000 limit on their liability. While you can purchase more protection, sometimes it may make more sense to explore other coverage options. Similarly, MA auto insurance liability requirements are quite low given the amount of damage that can be caused. Before you purchase an umbrella policy, you will be required to have a certain amount of home and auto insurance, as well as insurance on boats and other assets. When you hit your liability limits on a claim, your umbrella insurance may be used.
In today’s litigious society, anyone with any assets, such as a home or car, can be sued. While you may feel protected by your Massachusetts home and auto insurance policies, there are some situations that may exceed your coverage limits, leaving you vulnerable to expensive legal fees and settlements. Personal umbrella insurance can extend your limits and provide extra coverage to help protect you against these unforeseen events.