Did you know that a personal umbrella insurance policy provides additional liability protection? On those rainy days, you’ll be grateful for the additional coverage it offers.
What is a Personal Umbrella Policy?
A Personal Umbrella Policy is a separate policy that sits above a number of policies you hold including automobile, motorcycle, recreational, property or watercraft. It's designed to kick in when liability limits are exhausted on your primary insurance policies.
The coverage provided by a Personal Umbrella Policy insures bodily injury and property damage arising out of your personal activities anywhere in the world. It can also provide protection where your primary policy might have a coverage exclusion.
What Else Can an Umbrella Policy Protect?
Considering that the size of court awards has increased and lawsuits are more frequent than ever; your primary policy limits may not be enough, particularly if you partake in the following:
- Volunteer or sit on a not-for-profit board
- Travel outside of Canada
- Own property in the USA
- Own a rental property or cottage
- Own a pet
- Own a boat or jet ski
- Own a dirt bike or ATV
- Drive a luxury car
- Host large parties
- Employ household staff
- Own a trampoline
- Own a pool or hot tub
An Umbrella Policy provides you with peace of mind, knowing your assets and ultimately, your future is secure.
Why do I need an Umbrella Policy?
A scenario you could never have planned for…
Regardless of how cautious you are, no one ever thinks that the worst-case scenario will happen to them. Since we cannot see into the future, planning for a catastrophic loss should be an essential part of your personal risk management insurance plan.
Imagine for a moment, you’re driving, you make a left turn and out of nowhere, a pedestrian collides with your vehicle. This pedestrian came out of nowhere, but in an instant, the pedestrian is sent flying and lands on his head. Four years later a judge awards 5 million dollars against you for the pedestrian who now requires constant nursing care. Since you only had $1 million liability insurance on your auto insurance policy you are responsible for the remaining amount.
What financial position does that leave you in?
Why an Umbrella Policy is Important.
If you had an Umbrella Policy in the above scenario it would have covered both the legal fees associated and the remaining $3 million owing. Your personal finances would be secure, not hindered by this terribly unfortunate situation.