Many Springfield residents are happy with their current insurance policies, thinking that if anything were to happen, they could file a claim and the insurer would take care of everything. This is only true up to a point. If any damages are above the standard policy maximum limits, the insurance company will only cover part of it, leaving the homeowner to fend for themselves in order to pay off the rest. A personal umbrella insurance policy can dramatically raise the maximum limits on homeowners and auto policies, as well as other individual policies you may have purchased. These four scenarios demonstrate the importance of umbrella insurance for Massachusetts residents, especially for high net-worth individuals.
How Springfield Residents With Personal Umbrella Insurance Can Avoid Expensive Court Judgments
1. Car Accidents Where You Were Found At-Fault
Standard auto insurance policies usually have limits high enough to cover a new vehicle for the other party and their medical bills for most accidents. If you cause a particularly bad accident, or if there are serious injuries/fatalities involved, there is a good chance that your regular auto insurance policy will only cover part of what you will end up owing. You will likely end up being sued either by the occupants of the other vehicle, or their insurance company, for the remainder of what your insurance did not pay. With a personal umbrella insurance policy, can be better protected. Instead of having to pay out of your own pocket or declare bankruptcy, your umbrella insurance provider can cover the excess damage for you if it is a covered claim.
2. Slander or Libel Accusations
Since Springfield is a fairly tight-knit community, something you say or print could have a strong impact on someone else's life. Whether it is said unintentionally or not, you may end up facing a slander or libel lawsuit, which can quickly get expensive. Many umbrella insurance policies cover judgments, up to a certain dollar amount, that arise from a successful suit against you for what you said or wrote.
3. Natural Disasters in Springfield
If you have lived in your home for a long time, there is a good chance that it is worth significantly more than what you originally paid for it. Your current homeowners policy may either still be based on what your home was previously worth, or your limits may just not be enough to completely rebuild your house if it is destroyed. An umbrella policy may reimburse you for the value of your home and its contents over what your primary homeowner's policy will not cover, up to the covered limits.
4. Wrecking an Expensive Vehicle Without a Personal Umbrella Insurance Policy
Many high-end sports cars are actually modified versions of more common vehicles -- just with tens, and sometimes hundreds, of thousands of dollars' worth of upgrades and additions. Your current auto insurance company may just have you covered for the value of the base model of the vehicle, which is usually worth nowhere near what the vehicle is worth with the improvements. Umbrella insurance can help to cover this additional value, as well as covering you if you hit someone else's expensive vehicle (as long as it is covered under your policy).
A personal umbrella insurance policy should cover more than just the above scenarios, but these are some of the more common reasons why individuals decide to purchase this type of policy. Springfield, MA is a relatively safe city for your vehicle and home, but having that extra coverage over your existing policies can end up saving you a significant amount of money if disaster strikes.
This material is for informational purposes only. All statements herein are subject to the provision, exclusions, and conditions of the applicable policy. For an actual description of all coverages, terms, and conditions, refer to the insurance policy.