There are those of you who realize the threat of being sued is a longshot. Even so, you’ve invested in a $1 million umbrella policy to protect yourself from a lawsuit that could financially ruin you. For years, that was pretty darn good protection.
But it isn’t as good as it used to be.
Things have changed in ways that make getting sued more likely, especially if you own property or a vehicle. In Michigan, with increasing frequency, the legal system is where people turn when something bad and expensive happens to them.
This is why there are more personal injury billboards on our highways. The other day, I cracked open a fortune cookie and was shocked to find an ad for a personal injury attorney inside. What?!?! I couldn’t believe it! So what did I do? I got over it and ate the cookie. They are so good!
An umbrella policy provides additional liability coverage if the liability coverage provided by you home or auto insurance policies is exhausted.
A few years ago, if someone was injured on your property, the courts may have said, “The danger was easy to see. They should have watched where they were going. Case dismissed.” Today, courts are more likely to take a closer look and divide responsibility between the injured party and the property owner. Your homeowner policy’s liability coverage protects you until it runs out. That’s where the umbrella policy picks up.
With our state’s auto laws changing a number of years ago, you can now be sued for someone’s auto accident medical costs if their own policy’s Personal Injury Protection (PIP) isn’t enough. Your auto policy’s liability coverage protects you until it runs out. That’s where the umbrella policy picks up for you.
The good news is that umbrella coverage remains one of the most affordable ways to protect your assets. For many people, increasing their umbrella coverage by another million dollars costs only a few hundred dollars per year.
Contact your insurance agent for a conversation about your liability limits and umbrella coverage. A quick review today could make a significant difference if tomorrow brings an unexpected lawsuit.