grand rapids umbrella insurance

Grand Rapids Umbrella Insurance

WHAT IS AN UMBRELLA POLICY?

An umbrella insurance policy provides extra liability coverage, supplementing the liability protection furnished by your auto and/or homeowners insurance policies. An umbrella policy is essential if you are involved in a major lawsuit that exceeds the amount of liability coverage provided by your auto or homeowners insurance policy.

WHO NEEDS AN UMBRELLA POLICY

Some younger individuals or people without significant assets assume that they don’t need an umbrella policy. However, we suggest considering an umbrella policy if you can identify with one or more of the following. Even if you can’t, an umbrella policy may still be advisable.
You are taking measures to achieve financial success. An umbrella policy will help protect the investments you make and the savings you work hard to acquire.
If you’re like most young people, your largest asset is your future income. If you are subject to a sizable lawsuit, your future income may be garnished until the lawsuit is satisfied. An umbrella policy will help protect your future earnings from such an occurrence.
You’ve made it to retirement–congratulations! An umbrella policy can help ensure your nest egg stays your own.
What would you do if a judge ordered you to sell your home to satisfy a lawsuit? An umbrella policy can help prevent that from happen.
Having children of driving age can cause lots of concern for parents. You can be held vicariously liable if they kill someone in a car accident, if one of their friends is hurt at your home, or if they cause mental anguish to another person on social media. An umbrella policy extends to the acts of your children living at home or away at school.
Cash is king! But cash also comes with lots of risk. Not only do you have risk from your tenants but also from your tenant’s visitors. An umbrella policy can help keep your rental income in your pocket.
You are subject to the insurance laws of another state when you travel through it. Some states require very little coverage for their residents. That means someone else’s medical bills may become your responsibility if they’re hurt in a car accident that was caused by you. An umbrella policy extends coverage beyond just your home state.

WHEN CAN AN UMBRELLA POLICY COME INTO PLAY?

As you may have already guessed, an umbrella policy can apply to several scenarios. However, here are a few examples of common incidents when an umbrella policy could come into play:
  • A driver sustains permanent physical injuries that require long-term care and experiences a loss of income from a car accident car accident caused by you
  • A dog in your care (whether legally owned by you or not) bites your neighbor’s child. Even if the child pulled the dog’s tail, you may still be held accountable for the dog’s behavior.
  • You are hosting a small get-together for friends and one of your guests drinks too much, decides to drive home, and kills someone in a car accident. Although it was ultimately their decision to drive, you may still be held legally liable as the host of the party and supplier of the alcohol.
You may think of a long list of reasons why and how you can personally avoid these situations, but Dave Ramsey reminds us of an essential fact: that “none of these acts [are] malicious or intentional—they [are] accidents.”

CONCLUSION

With the new auto insurance No-Fault reform taking effect in July 2020, liability coverage will become more important than ever. Lawsuits are expected to increase in size and frequency due to the fact that drivers will be able to sue other drivers for their uncovered medical expenses, which was disallowed from 1973 to 2020.

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