Life is unpredictable, and it is impossible to predict whether you’ll be sued because of an accident. It’s equally difficult to predict how much the opposing party may win in a lawsuit–making it hard to budget for the unexpected. To protect your finances from losses due to accidents, you should consider buying Umbrella Insurance in Brookfield.
What is Umbrella Insurance?
This type of coverage protects your personal assets (inheritances, wages, and lottery winnings) from losses after a personal injury suit. If someone has an accident on your property, sues you and you lose, you will likely have to pay their lost wages and medical bills, which are very expensive. Umbrella insurance isn’t just for the rich; even those with no assets can suffer wage garnishment after a loss in court.
What is Covered by an Umbrella Policy
Umbrella Insurance in Brookfield starts where your business, homeowner, and auto policies stop. For instance, if your auto policy pays for $500,000 in medical bills per accident and your umbrella policy is worth $1 million, the latter pays what your auto insurance does not. Most umbrella policies range in value from $1-$5 million in value, with higher-value policies available for those with greater assets.
What Isn’t Covered
Umbrella policies are considered personal insurance, and won’t protect you from business-related lawsuits. For example, if you babysit in your home and an accident occurs, your umbrella coverage won’t pay medical bills because babysitting is considered a business. However, a policy might pay your children’s medical bills if they babysit in someone else’s home.
Umbrella policies don’t cover high-risk, unnecessary activities like street racing, and may not pay for losses incurred by drivers of semi trucks, farm tractors and RVs, or vehicles weighing more than 12,000 pounds. Nor will it cover damages to your vehicle, or your property (which are covered by auto and homeowners policies).
Umbrella policies from Midwest Insurance Group. are intended as secondary coverage, and as such they have underlying requirements. You’ll need a certain level of homeowners and auto coverage to get an umbrella policy, and requirements vary depending on the insurer.
