If you have liability protection through your homeowners and auto insurance, you may feel protected against lawsuits stemming from accidental injuries and damages. While these policies provide important protections, the policy limits often do not provide enough protection for serious situations. In today’s litigious society, insurance experts recommend that Massachusetts residents consider purchasing additional protection through a personal umbrella insurance policy.
Personal umbrella coverage exists to extend your liability protections beyond the limits and scope of your massachusetts homeowners insurance and auto policies. When an accident occurs, if your other liability protection runs out, you can turn to your umbrella policy to help pay any additional expenses for covered events. By combining an umbrella policy with your Massachusetts homeowners and auto insurance, you can have $1 million or more in liability coverage.
Since a personal umbrella policy extends your other liability coverage, situations that are covered under those policies may also be covered by your umbrella policy. These can include:
All insurance policies have limits to their coverage. Homeowners policies typically cover up to $300,000 in liability protection, while a minimum of $5000 in property damage and $20,000 in bodily injury is required for MA auto coverage. Though you can purchase additional coverage on these policies, it can quickly raise your premiums for coverage you may never need. However, sometimes you may need more coverage.
If you are the cause of a multi-car accident with serious injuries, your massachusetts car insurance policy may not cover you. There's a chance you may be sued for medical expenses, lost wages, and other damages. Combined with your legal fees, the damages owed can easily exceed the coverage limits on your existing policies. When this occurs, a personal umbrella policy can help by extending the limits of your liability protection to $1 million or more, depending on the policy terms.
Since personal umbrella policies are considered secondary insurance, the premiums are often very low. You can only use your umbrella policy when your other liability coverage has run out, or for specific situations that aren’t covered by other policies. Often, you can purchase additional liability protection with an umbrella policy for less than increasing the policy limits on your homeowners and auto policies.
Umbrella policies require that you have a minimum amount of other liability coverage. To help reduce your out-of-pocket expenses, speak with your agent about coordinating your liability limits with your umbrella policy deductible. This can allow your umbrella policy to begin to pay benefits as soon as your other insurance is exhausted.
Life is unpredictable. Even with homeowners and Massachusetts auto insurance to protect much of your liability needs, some situations can exceed your policy limits, forcing you to pay the remainder out-of-pocket. Personal umbrella policies are an affordable option for extending your liability protection, potentially reducing the risk of financial devastation in the wake of an accident.