Quote:
Originally Posted by billethkid
If one has the proper liabilities covered in their home owners, auto, golf cart, boat and ATV policies why have an umbrella policy too?
|
All depends on how much you have to lose. For example, do you have 100/300 liability on your golf cart and auto? It is probably the most recommended policy limits BUT what if your net worth is $1 million plus and in a flash....you are responsible for very serious accident causing death to a young professional or injury to
one or more that would require long term medical care. (You dont need to be recless for this situation to occur..it could result from a medical emergency or you just black out while driving etc)
The first thing the injured parties counsel would do is to quickly deterime your net worth or "style of living" and believe me they will sue you for the Max they could. Most likely they would not get it but while you are waiting for the case to settle (which could be up to 2 years) you may be sued for up to $1 Million while you only have insurance covering you up to $300K. That would be a tough 2 years while you are waiting to settle.
So to answer your question, Not everyone needs an Umbrella policy, but if your individual financial situation is such and you dont have an umbrella policy, your could be at risk.
Umbrella policies are relatively reasonable in price ($200 range+/- $50) and it would typically cover you for auto, home golf cart boat etc. Cost depends upon your exposure (# of cars/boats/CG's) as well as exisitng limits on current policies.