Hi everyone,

Since we live in a litigious society, with many lawyers just looking for the next accident to happen, it is very important that you have an umbrella policy. This is also called an excess liability insurance. The liability coverage is in excess of the liability limits you have on your auto and homeowners insurance. In certain states they could garnish your wages for judgements above your liability limits.

The wife of a friend of mine got sued after she hit someone backing slowly out of a parking spot. No one got hurt, both were shaken and the woman that was hit broke two nails. My friend’s wife was sued for $750,000 and they lost. Fortunately they had an umbrella insurance, although for $500,000 only. Their insurance company appealed and eventually the judgment was reduced to $75,000. The insurance company paid all the legal costs.

Make sure you have a policy. A $1 million policy will likely not cost you more than $200. As always, write me with any questions.

Until next time,

Patrick