Umbrella Insurance Explained

In today's world of lawsuits, the courts arebe in addition to criminal charges pending for drug
awarding humongous monetary reimbursementor alcohol abuse, even if you only had one beer.
for just about any type of suit, even theAnd it may or may not go in front of a jury, as
seemingly frivolous. Until true reform is enactedsome of these cases can be decided by a judge.
into law, it may be wise to carry an umbrellaBut, in most large award cases, a jury will be
policy.involved and 6 to 12 people will decide first,
Umbrella insurance is designed to cover costswhose fault is it, if that can be decided and what
over and above the limits you may have on yourthe monetary compensation will be. And if it is
homeowner's, auto and watercraft policy's liabilityboth people's fault, then what is the percentage
coverage. Though once a policy for theof blame to be assigned to each person?
extremely wealthy who are often targets ofBetween monetary damages and court fees, you
expensive lawsuits, more and more average Joescould find yourself losing your home and/or other
are buying this coverage in order to protect theirassets as a result. Most states have financial
assets.responsibility laws that will enforce the court's
Think about it. You are out on the lake, enjoyingdecision.
an absolutely stunning day and as you pull out ofUmbrella protection can provide insured people
the cove where you have been fishing, some hotwith additional liability coverage for a very
rod skier comes around the bend and the two ofreasonable price when compared to the coverage
you collide. Now, without other witnesses, who isgained. In addition, the umbrella policy will cover
to say who is at fault? In fact, even withyou on non-business related claims, regardless of
witnesses that may be hard to determine.where you are in the world.
Witnesses are notoriously unreliable in stressfulDon't make the mistake of saying, "It can't
situations; sometimes 10 witnesses can have 10happen to me." What if the guy in the ski boat
different stories. In many cases it is just a matterhad a toddler in the boat that was injured, and
of who gets to court first and throws the firstmaybe a wife and teenage son or daughter, and
punch. That's not to say that ALL accidents willit was just you, one old guy out enjoying the day,
end up in front of a judge, but insurancebut you happened to have a cooler with beer in it,
companies tend to fight big lawsuits, especiallyeven if you hadn't drunk any and didn't plan to
ones that are 'iffy' at best. So, you may not haveuntil you camped for the night? Who do you think
an option. And if the suit does not go in yourthe jury's or the judge's sympathies would lie
direction, then you may be liable for whateverwith? We like to think that we are protected by
was awarded over what your policy covers.the law, but there you are back to relying upon
Liability is the portion of your insurance that payswitnesses or the first emergency responders on
expenses for lost wages, rehabilitative therapythe scene and it comes down to "he said-she
and medical bills due to the negligence of thesaid". It CAN happen to you! Maybe an umbrella
person deemed at fault. It is a civil case, and maypolicy isn't such a bad idea after all.