Most people rely on their home and auto insurance alone to protect them from liability exposures and lawsuits, but what happens when those policy limits are not enough or when a loss occurs that those policies don’t cover?

An Umbrella policy provides broad liability coverage on top of your other policies to afford important protection against claims or judgments that are larger than your auto, homeowners or boat owners liability limits.

What Umbrella Insurance Covers

Here are some examples of incidents an umbrella policy could cover if your homeowners or auto insurance wasn’t enough:

– Your dog attacks a child who is walking past your house on the sidewalk.  She receives 37 stitches to her face and neck and requires multiple plastic surgery procedures.   Her parents sue you for $750,000 to cover her medical bills, future surgical procedures and pain and suffering.

– You lose control of your car and cause a serious multi-vehicle accident resulting in one fatality and 4 serious injuries.  Your auto insurance limit of $500,000 is not sufficient to even cover the medical bills and vehicle damages.   Pain and suffering awards could approach $3,000,000.

– You host a party at which alcohol is served.  Your friend leaves the party and is involved in an accident on the way home.  Your friend is seriously injured with multiple fractures and a concussion.  The driver of the other vehicle is airlifted to the hospital and undergoes multiple surgeries for internal injuries and fractures.  Both your friend and the other driver sue you since you were the host and provided the liquor.  Judgment is entered against you for $1.5 million.

Umbrella policies also cover malicious prosecution, liable, defamation, wrongful entry, invasion of privacy and other harms that may be excluded by your underlying policies.

Sometimes the unthinkable happens.  An Umbrella policy can give you peace of mind by providing an extra layer of protection for your assets and your financial future.

Contact an Agent today to see how Farmers of Flemington’s Umbrella policy can help protect you and your family.