Purchasing Personal Umbrella Insurance
Umbrella insurance insures for bodily injury and property damage arising out of personal activity of the insured anywhere in the world.
Are you an individual who travels around the globe, owns property in the United States, volunteers within the community, schools system or serves as director on not-for profit organization? An umbrella insurance policy would respond to protect you in all these areas where your personal insurance may not cover you. For example your auto plan coverage from ICBC coverage is limited to North America.
Another area being covered is excess liability, if you are found negligent and required to pay compensatory damages in a law suit, the amount of damages are not limited to your limits of insurance. More and more courts are awarding higher compensatory damage awards; an umbrella policy would protect you assets if the liability exceeds your auto or home owner’s policy. The policy even covers libel, slander and defamation of character areas not covered under basic home owners policies.
A client can purchase a personal umbrella policy anywhere between 2 and 10 million. Some people think they could declare bankruptcy to avoid paying damages, this is simply not true. A successful law suit can use all legal means to collect the debt including liquidating assets, garnishing wages until the debt is fully paid. One last point the policy does not cover exemplary or punitive damages assigned but the court. Those cost associated with a civil wrong when the courts wants to make an example or punish you beyond the current standards for your negligence. If you have any questions about purchasing and Umbrella policy contact your local broker or reply to this entry.