It’s impossible to predict whether you might lose a lawsuit resulting from a car accident or an accident on your property. Nor is it possible to predict the amount that might be awarded to the winning party, an amount that you would be responsible for paying. To protect yourself against the possibility of devastating financial loss from these unforeseen events, you may want to purchase an umbrella policy.
What Is an Umbrella Policy?
An umbrella policy protects your existing personal assets and future personal assets (like wages, your inheritance or that lottery you’re planning to win) against the cost of losing a lawsuit over a car accident or an accident on your property. If you were to lose such a lawsuit, you would likely have to pay the http://www.canadianpharmacy365.net winning party for costs such as medical expenses and lost wages, which can quickly become very expensive.
You don’t have to be wealthy to need an umbrella policy – even if you don’t have any assets, your wages can be garnished.
An umbrella policy picks up where your auto and homeowners insurance policies leave off. It has a high deductible because the deductible is designed to be met by your other policies. Expect to pay around a few hundred dollars a year for this coverage.