Do I Need Excess Liability Coverage? Don't End Up Like Mary and John!

John and Mary live in a nice five bedroom home located in California. They've lived in their three thousand square foot home for twenty five years and are retired. Their home is paid for and worth about $900,000. They live off their retirement and have hardly no bills to pay. John and Mary have always had a homeowners policy to cover their home in case of fire, theft or other potential losses involving their home. Mary is age 75 and John is age 72. They hope to someday leave their home to their adult children.

On a nice spring day, Mary went to run some errands in her vehicle around her neighborhood. She pulled into the parking lot of her local grocery store. For some reason, after Mary parked her car , her foot slipped off the brake and hit the accelerator instead. Mary's car went through the wall of the grocery store. Her vehicle continued through the wall of the store and she collided into two pedestrians who were standing in line with their grocery carts.

Both of the pedestrians were rushed to the hospital due to the severity of the injuries they sustained from Mary's car striking them. Mary was upset about the accident and did not know what she should do. She called her insurance agent the same day of the accident and her agent took her information to start processing her claim.

Months later after the accident, Mary and John found out that the damages filed by the two pedestrians injured from the accident, exceeded the auto insurance liability limits that they carried with their insurance company. John and Mary found out from their adjuster that they would be personally liable for any money damages which exceeded the liability limits that they carried.

The adjuster also told them that the pedestrians attorney did an asset check to see if Mary and John owned property. The attorney found out that they owned a home and would be expecting them to contribute additional monies towards the settlement of the pedestrians claims in addition to the auto insurance liability limits that they carried.

Mary and John were devastated and did not realize that their home the most valuable asset they owned was at stake! They worked all their lives for their home and could not believe that it may be at risk due to the accident. John and Mary did not know they may have avoided contributing monies towards the pedestrians injury claims if they had excess liability coverage or an umbrella policy!

What is excess liability coverage or an umbrella policy? This policy would be liability coverage which would exceed your homeowners or vehicle policy for damages you may be liable for.

The cost of excess liability coverage or an umbrella policy is very minimal for the amount of additional coverage you would receive. You can expect to pay somewhere between $150-$400 annually for this coverage. Consult your insurance company for details. Remember, excess coverage is important for you to consider if your assets are substantial, especially being a homeowner. This extra protection may give you better peace of mind in the long run and will be well worth it!

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5 Fundamental Principles of Insurance

Insurance is a contract, a risk transfer mechanism whereby a company (Underwriter) promised to compensate or indemnify another party (Policyholder) upon the payment of reasonable premium to the insurance company to cover the subject-matter of insurance. If you are well conversant with these principles, you will be in a better position in negotiating you insurance needs.

1. Insurable interest. This is the financial or monetary interest that the owner or possessor of property has in the subject-matter of insurance. The mere fact that it might be detrimental to him should a loss occurred because of his financial stake in that assets gives him the ability to insure the property. Castellin Vs Preston 1886.

2. Umberima fadei. It means utmost good faith, this principle stated that the parties to insurance contract must disclose accurately and fully all the facts material to the risk being proposed. That is to say that the insured must make known to the insurer all facts regarding the risk to be insured (Looker Vs Law Union and Rock 1928). Likewise, the underwriter must highlight and explain the terms, conditions and exceptions of the insurance policy. And the policy must be void of 'small prints'.

3. Indemnity. It stated that following a loss, the insurer should ensure that they placed the insured in the exact financial position he enjoyed prior to the loss (Leppard Vs Excess 1930).

4. Contribution. In a situation where two or more insurers is covering a particular risk, if a loss occurred, the insurers must contribute towards the settlement of the claim in accordance with their rateable proportion.

5. Subrogation. It has often been said that contribution and subrogation are corollary of indemnity, which means that these two principles operates so that indemnity does not fail. Subrogation operates mainly on motor insurance. When an accident occurred involving two or more vehicles, there must be tortfeasor(s) who is responsible for accident. On this basis, the insurer covering the policyholder who was not at fault can recover their outlay from the underwriter of the policyholder who is responsible for the incidence.

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Insurance Umbrella Policy - A Complete Buyer's Guide

Insurance umbrella is the best policy when it comes to providing additional liability coverage for legal claims and other out-sized grievances against the property owners and vehicle insurance policies. When the other liability insurance policies lapse it is time for the insurance umbrella policy to kick in and adjust the difference by making up for it. The claims which are not covered by the property or vehicle insurance are also covered by this policy.

There are different values of an insurance umbrella policy which ranges anywhere between proximately one million dollars to ten million dollars. The coverage amount on these policies is high but so is the amount deducted this in turn makes the premium of this policy highly affordable.

Important Points From The Buyers Guide:

1.The most important thing that you are required to do is gather all the important pieces of information on your home or vehicle insurance policies. This includes the contact numbers and the liability coverage provided by the insurance this will help in the easy verification of facts.

2.You are required to synchronize your existing home or vehicle insurance policy with the insurance umbrella policy. This is important because an umbrella policy comes in use after your previous policies gets exhausted.

3.Dealing with a single company is an advisable thing to do because it reduces the bother of having to deal with numerous companies who will argue over the issues of liability responsibility. Thus choose the company which serves you first.

4.It best to do some research before buying this policy. Contact various different companies and take an estimate from them on the umbrella policies they provide this will give you the benefit to compare and contrast the estimated amounts and then choose the one which suits you the best.

The people who reside in expensive places and those who lead a lavish lifestyle require this type of policy because general insurance resources will fail to cover the risks of a high lawsuit.

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Excess Liability Insurance - Synonymous With Savings and Peace

Individuals and professionals often go long ways in protecting and fortifying their assets but often miss out on backing themselves with comprehensive insurance coverage in the event of a disaster. Often times, insurance for different components are opted for which is the right option at the epidermal layer. But these insurance policies cover a certain amount with respect to the various components of your assets and you might have to pay a considerable amount of money from your pocket in case of a lawsuit. This is where excess liability insurance comes into play and contributes that extra amount of coverage so you don't have to bear all the extra expenses all by yourselves.

The excess liability insurance is a must have in an individual's arsenal of insurance policies to make sure heavy damage is prevented during unprecedented events. To policy holders, excess liability policies provide an extra layer of peace and protection during possible financial losses incurred due to the claims imposed by others injured because of the policy holder. If the policy holder has a liability insurance coverage, the basic liability coverage increases by excess liability insurance.

There are different types of excess liability insurance schemes provided by insurance firms and these policies are custom built to suit individuals and professionals alike. They are also available for large corporations. Customized excess liability insurance policies are available, meeting the requirements of individuals and corporations so it helps curb the risk and loss factors in the event of an unforeseen situation.

Policy holders benefit from the coverage offered by their policies from property damage as well as injuries. Additional protection can be opted for, from this policy against claims which are caused by false eviction, false arrest and slander. Excess liability insurance always depends on the policy holder's basic policy, which means it provides coverage beyond an already existing underlying policy such as a home- owner's policy or an automobile policy. The excess liability policy can include medical costs and other claim payments that may exceed the underlying policy's amount. The coverage is normally provided by an umbrella liability policy and these personal liability policies are provided by most casualty and property insurance firms.

No matter you are rich or poor, big or small; you should evaluate your possessed insurance policy covers against the potential liabilities. if you found that you may face a situation, when you run out of covers then you should go for umbrella insurance.

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Why You Need An Umbrella Insurance Policy?

You might have heard about Umbrella Insurance, but may be you do not exactly know what it means. It does not guarantee you to stay dry, while walking in the rain, but it provides an umbrella of almost everything that other traditional insurance policies do not. As well as this, fills in gaps in coverage after your limits of standard policy are exhausted.

After realizing the meaning of this insurance policy, you will probably have one question - Why I need an umbrella insurance policy? This article will basically respond to your question.

On a daily basis, there are personal complaints filed opposed to ordinary people, with various reasons. Once or if it happens to you, you might be prepared for it. Frequently, individuals are charged and have no further protection to protect the claimant from going in the lawsuit after this. In this case you need to have an umbrella insurance coverage and you will avoid such sticky situations.

Umbrella insurance is often stated as excess liability. It gets going when the basic limits on your car or home insurance are exhausted, or if you are generally charged for something that is not included in your traditional insurance policies.

The majority of insurance companies won't give you coverage except you have both home and car insurance agreement with them.

It is essential to understand that the excess liability defends you for all kinds of items that have nothing to share with your auto or home. Things like mistaken arrest, false custody, slander, unlawful access or deportation are included in your umbrella.

In addition, some umbrella insurance policies offer coverage for those, who have connection to any charitable organization where they associate.

It is not a requirement that everyone should have an umbrella insurance policy, but you may be amazed at how many citizens necessitate it. You are recommended to obtain this policy if:

1. You hire out your house or join in a holiday exchange program with other holidaymakers.

2. You are a business proprietor and if you possess a multimillion dollar company, in that case make sure you have this policy.

3. You allow people to look after your house while you are away.

4. You have a housekeeper, gardener or other person who works at your house and who are not qualified or joined.

These are the main points that will help you recognize why you need umbrella insurance policy. If you find yourself in one of these categories, you are advised to call insurance companies and get an estimate of an umbrella insurance policy. Prices are low and so it is well worth your money. It does not even make awareness to take additional risks when safety can be acquired at such a low price. Remember that your safety is the foremost.

Enjoy yourself with an umbrella insurance policy. This kind of insurance provides an extra peace of mind by defending your possessions and your well-deserved money.

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Five Things You Should Know About Liability Insurance

1. In today's litigious society, 1 in every 12 Americans is sued each year, rendering liability insurance crucial in protecting yourself and your loved ones. Although many people believe that it won't happen to them, the frightening reality is that anyone can be sued. Could your otherwise friendly dog sense fear and harm someone? Could you be deemed at fault for a car accident? Could someone sustain an injury on your property? These are just a few of the common ways you can be confronted with a lawsuit, jeopardizing your family's finances.

2. Whether you are a home or business owner, one important type of liability insurance is an umbrella insurance policy. Providing an additional layer of liability coverage on top of your existing policy's liability limits, this type of coverage proves invaluable in the event of an accident or other situation that evolves into a lawsuit. For instance, if your auto insurance policy has a liability limit of $250,000 and you lose a $500,000 lawsuit resulting from an accident, you will be left to finance the remaining $250,000 alone. An umbrella policy can prevent this, providing you with additional liability coverage in million dollar increments to help you finance the costs of lawsuits, settlements and jury awards. Without this additional coverage, a serious accident can leave you confronted with a financial disaster. A commercial umbrella policy functions in the same way, providing you with additional liability coverage for your business, on top of your commercial general liability policy's existing liability limits.

3. As a business owner, there is a specific type of liability insurance that concerns you - commercial general liability coverage. In addition to your worker's compensation coverage and insurance for your commercial property, this type of liability coverage will also prove invaluable in protecting your business from financial disaster. In the event that your company is confronted with one of the most common types of lawsuits filed against businesses, which include discrimination, harassment and wrongful termination according to Chron.com, your insurance will provide coverage. Since losing a lawsuit could force some small companies out of business, this type of coverage plays a significant role in protecting the company you've worked hard to build.

4. Liability insurance is not only important for home and business owners, but also it proves crucial in protecting people considered to provide professional services, like medical professionals. While all providers of professional services should protect themselves with professional liability insurance, physicians tend to face especially high risks. In fact, according to the American Medical Association, six out of every 10 physicians ages 55 and older have been sued, illustrating the importance of professional liability coverage, which protects companies and individuals against loss resulting from acts, errors or omissions in the performance of their professional duties. Professional liability insurance can help protect all medical professionals, from nurse practitioners to pediatricians, from the increased exposures they face.

5. Considering that liability coverage plays a pivotal role in protecting what matters most to you, from your home and family to your business, it's important to rely on someone you can trust to help guide you through the process of securing this type of coverage. Independent insurance agents will help you understand your options, make coverage recommendations and find the best liability policy for your specific needs, ensuring that your assets remain protected.

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How to Get Umbrella Insurance at the Best Price

Peace of mind could be worth a lot. That is why I suggest having an umbrella insurance policy. It shields you from liability from charges that go beyond what your traditional insurance covers. In this article I will tell you why and you should have an umbrella policy and how to obtain one.

First, umbrella insurance doesn't just cover you from damages due to an auto accident it can save you from financial ruin. It can protect you from things that are beyond your control Such as if someone was to be hurt on your property and was to sue you, Your regular insurance will pay the damages up to what it's liability is, then your umbrella policy will kick in. If you don't have such a policy under some circumstances and in certain states you could lose your home and car.

Second, finding an umbrella policy that you can afford is as simple as going on line and searching insurance sites for a plan you can afford. If you already have an insurance agent who handles your other policies such as health, life, home and car you may want to ask them about getting an umbrella policy. Usually if you can bunch some of your coverages you can get a better price. An umbrella policy should cost you somewhere between $200 to $300 a year. In the event you ever need to use it it will be well worth the cost of paying for it. Most companies that sell umbrella insurance will require you to have auto insurance and homeowner's that is equal to your deductible. This will ensure that you will not have to pay any more out of your pocket than is necessary.

Lastly, if you are an individual that lives a full life meaning you drive your car often you invite guests into your home may have pets and interact with people than you are probably someone who should consider having an umbrella insurance policy. The cost of one small mishap can cost you everything you have worked all your life to accumulate.

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Do I Need Payment Protection Insurance?

Payment Protection Insurance (PPI) is a loan that is provided to cover a debt that is presently outstanding. It is an insurance product in the form of loan or an overdraft, and is commonly sold by banks, insurance companies and other credit providers as an add-on to the loan or overdraft. The credit providers offer this loan to you if you are unable to pay some debt on time due to financial crises.

Payment Protection Insurance is at times also known as Credit Protection Insurance or Loan Repayment. The suppliers of this insurance can vary slightly however, Payment Protection Insurance covers a person against an accident, unemployment, illness or death. All these are circumstances that may be a reason for preventing a person from earning a salary by which they can pay their debt.

This insurance usually covers a minimum repayment against the loan or overdraft for a particular period, if all the appropriate criteria are met. Normally this time lasts for about 1 year or so. After this time, the person must find some other sources to repay the debt. Normally people are able to find or start their work again by this time so they can repay the debt themselves.

Payment Protection Insurance though helps to repay your debt at the time of crises but obtaining it is not an easy job. You can assess if you need payment Protection Insurance by pondering over a few things. You should decide whether insuring your loans is a necessity for your lifestyle.

For example if you are old or very likely of getting an illness; if you have a large family to support or if your financial conditions are quite stressed, then you have a need for payment protection Insurance. If you are self-employed, then there is no point in taking PPI. Even if you are working part time or are suffering from any sickness, then you should not go for Payment Protection Insurance since it is likely that you would not be able to repay your debts even after the period for PPI is over.

If you have any illness like cancer and you are hoping to get PPI, then it is needless. Lenders are aware of the fact that these diseases can be diagnosed and treated much quicker than in the past and they are reluctant to offer the loan. So the diagnose would not definitely end up in getting you this loan.

Before deciding whether you need a Payment Protection Insurance, you must check on your company's policy regarding long-term sickness. Many firms and companies pay you salaries in case of serious sickness. Furthermore, some of the larger companies have schemes under which they pay you your salaries for as long as 6 months.

In such a case, you would not need Payment Protection Insurance to repay your debts. Moreover, if your spouse or partner is earning well and can support you while you are sick, then again you do not need a PPI. Although PPI is very useful when you are in crises, before taking it, you should rationally decide if you need it or not. Not only is it difficult to get it, PPI Claim also does not come cheap.

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Umbrella Insurance - ANPAC

High dollar judgments are brought against individuals and awarded to injured parties every day. Add to that that today's society is more than happy to enter the court room in order to sue and money-hungry attorneys who are competing for their business, then you could end up with a legal judgment against you that could result in your being in a severe financial bind, if not bankrupt.

For example, the lights at an intersection have stopped working and you and a van full of people both head into the intersection, colliding. A young girl in the van suffers an amputation as a result and her family sues and receives a judgment in the amount of one million dollars and your maximum limit on your automobile insurance is only $250,000. Who will pay the remaining $750,000? Yep, you guessed it-you will. And, in order to collect this judgment, your assets, to include your home, savings accounts, mutual funds, stocks, bonds, your car and boat and your paycheck can be attached in order to pay it. A judgment of this kind can ruin you!

ANPAC, part of the American National Family of Companies, can provide an umbrella policy that will close that gap. A personal umbrella policy can provide up to an additional $5 million in financial protection for you and your family, over and above your primary limits when it comes to Property Damage, Personal Injury or Bodily Injury.

ANPAC requires that you carry a minimum of Automobile, Personal, Farm, Watercraft or Rental Owner's liability. That minimum will vary according to the state or territory in which you live and are standard amounts on most existing policies industry wide.

The ANPAC site enables you to find an agent by using your zip code or with one of their other search methods like area code, state, city & state, or an agent's name. You cannot get a quote on the site, only because American National feels that you cannot possibly get an accurate quote by inputting to a generic form online. There are just too many variations and attributes that can change your rate. But, when you call or request to be contacted, there is absolutely no obligation to get coverage through them, and any agent will understand that you are being smart by "shopping around" for the perfect coverage at the perfect price. An agent can advise you on the best coverage limits, the right deductible for your situation and on money-saving ANPAC discounts and rewards. The quote you receive will be fast and accurate and if it's not, then you can go elsewhere and that particular agent lost your business because he or she didn't do their job.

It's plain and simple. You are paying for a service. So many not only don't understand their insurance coverage, but are also intimidated by their insurance agent and the company he represents. Somehow the insurance industry has made us afraid to "step wrong" with the threat of dropping coverage or inadequate claim payments.

You can shop for insurance, to include umbrella insurance, just like you would shop for a major appliance, a remodeler or any other service or product. But also remember that your record speaks for itself. If you have been a reckless driver or have been convicted of numerous moving violations or DUI, then you can expect to either pay exorbitant rates or to not be able to get umbrella coverage. Insurance is a privilege, not a right and insurance companies are not out there to lose money. They are also not a 'not-for-profit' organization. They can go broke just like the next corporation, so they must have limits in place for risky clients.

But, thorough research and understanding your current insurance policies will help you when it comes to shopping and comparing your umbrella coverage options.

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The Scope Of Umbrella Liability Coverage

It is extremely frustrating and disappointing, when in the midst of crippling and devastating situations, one is bothered by worries of cots and legal settlements. Sure, this hassle can happen with anyone and the problems and worries are of an unexpected nature. True, there are so many options of insurance against such damages and unforeseen events. You can insure your assets and liabilities, like car, house and so on. Still, sometimes, your extensive insurance cover may fall short of settling and insuring all your expenses and arrangements. Therefore, it is necessary that you add an umbrella insurance policy to your arsenal of security. An umbrella insurance policy would be recommended for its versatile approach to the various liabilities and assets of the individual. However, before buying an umbrella insurance policy, one would be advised to know more about the scope of the umbrella liability coverage.

Like an umbrella, the umbrella insurance in your possession would be like a constant safeguard against the unexpected adversities and calamities. Sometimes, your insurances would not be sufficed to provide for all the expenses. Your vehicle insurance may pay for all the repairs. However, there could be gaps in the vehicle insurance cover. All the expenses and legal arrangements may not be provided for. In such an event, your umbrella insurance policy would function efficiently. The umbrella liability coverage would reach right up to covering all the legal settlement fees and the repair costs effectively.

Also, you may decide to take a house insurance. While it may secure the house against unseen damages and structural faults, your house insurance would not be sufficient to give an all round security against crimes like libel and so on. There is no reason to actually worry, if you have got an umbrella insurance policy. The umbrella liability coverage also gives you the security of costs of settlement of such crimes and offenses.

More specifically, the Umbrella Insurance, in your possession, would be of great advantage and benefit for settling the claims on liabilities. For instance, if some party has borrowed money from you and has not returned, then it could spell a loss for your business. In such a case, going to court is inevitable. Here too, the umbrella liability coverage would be of assistance. The umbrella policy would allow your legal claims to get solved. It would provide for the best legal assistance and the costs involved.

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Umbrella Insurance - The Best Liability Insurance

What is an umbrella insurance policy? This insurance policy has proven itself as the best insurance policy and people are curious to know more about it, so that they can avail one of the best opportunity for securing their assets and liabilities. Umbrella insurance policy as the name suggests, is a full protection plan against the hard hitting crises. Its protection is similar to that of an umbrella, which protects you from bad weather; be rainstorm or harmful sun rays.

In this article, we will discuss the benefits and advantages of an umbrella insurance policy. This insurance plan or policy provides you a complete coverage for your injuries, liabilities, assets and damages to any property or possession. From this we can understand the effectiveness and benefits of this insurance plan in the days of adversity and crisis.

There is a long list of covers offered by an umbrella insurance policy. This insurance plan is basically liability insurance with a number of additional packages. A person can chose a number of assets, for which he requires an insurance plan.

Furthermore, this umbrella or excess insurance product also helps in the defense in lawsuits as matters of your landed property may lead you to the court. The umbrella insurance plan helps you in getting a suitable and proficient lawyer. To avail such an outstanding insurance policy, there is an eligibility criterion for the selection of suitable candidates; therefore, you need to understand the basic terms and conditions in relation to the umbrella insurance products. The basic condition or constraint to meet the criteria is to set the minimum limit on your liabilities, such as your vehicles and homes.

The reason behind the remarkable popularity of the umbrella or excess insurance plan is, its convenient and flexible mode of payment as well as easily payable premiums. The umbrella insurance policy is of great benefit for everybody. Suppose, you had an unfortunate accident and the damage to your car will cost a fortune or you may be injured seriously. Usually in such a case, the other insurance plans will pay for your car damage and that's all; but umbrella insurance product takes coverage to another level and provides you adequate compensation for the personal injury as well. I hope that you will be able to understand, what is the true worth of an umbrella product and to what extent this insurance plan can be beneficial to you in securing your future.

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Individual Health Insurance Versus Family Insurance - Which Is Better?

As an insurance customer you may have to consider which is more cost effective, an independent health insurance plan or a plan that includes your family. Individual health insurance will generally be cheaper than health insurance that must be extended to cover several individuals unless the individual in question is suffering from numerous complications. There's still a lot of decisions to make if you go with an individual insurance plan like do you want a basic or major insurance plan, do you want to be able to pick which doctor you go to and have a more expensive plan or do you want to choose from a list of doctors available from your insurance company and see them thus having a smaller premium to pay.

However, this all changes if you have to pay for not only yourself but your dependents' health needs. In this case it's cheaper most times to have plans that include your dependents as four individual plans will of course, be more expensive than one plan that covers all four individuals. The more people covered under a particular insurance plan, the more expensive it will be in much the same way as the more people covered under an umbrella, the bigger the umbrella needs to be.

Of course, the more people covered under an insurance plan, the more problems you may run into in paying for the plan as smokers' plans are more expensive than non-smokers, people with asthma or diabetes may not fall under the insurance's payment plans as this may qualify as a preexisting condition. Gender, age and general health previously is also a large factor in determining the cost of premiums.

Family Insurance plans cover all the same things that individual plans do including x-ray and laboratory service, prescription medications, surgery, hospital stays, emergency treatment, ambulance services, dental and mental health care. However, like most insurance policies eye care services are usually not included and can be added on for a fee.

Basically the choice is entirely dependent on the make up of your family, and the decision should lie upon which would be better economically for your budget. A health care plan that caters to individual needs that may not need to be addressed by the entire family for example an asthmatic child may need special care his or her siblings may not need. Or you can purchase a health care plan that covers your entire family, smokers and alcohol consumers alike.

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Personal Liability and Covering Your Assets

Umbrella insurance is a wonderful thing to consider in the world we live in. It will provide you with more money for your accidents that may happen in life. This can help cover your legal expenses if they were to go over your home or car insurance policy limits. Some insurance companies will offer up to $500,000 in regular coverage, and then offer an umbrella policy up to $1.5 million. This can be a great way to protect your assets if you deem necessary.

You should talk this over with your agent and see what options are available for you. They can also advise you based on your individual situation as well. Different people will require different types of insurance. Ask different questions to find different answers. I have known some people that have found it to be cheaper to get a $250,000 policy for themselves with a 2 million dollar umbrella policy than it was to just get a $500,000 policy. This doesn't make much sense to you and me, but insurance companies have their reasons for what they do. Just ask the questions and you might be surprised what you are able to find out. You can still enjoy a lot of insurance to help you sleep at night, while getting it for a very reasonable price.

I personally recommend going with big name insurance companies. I have some policies with smaller companies, but they are usually for rental property and such. Just call around and see what is available to you in your area.

Some umbrella policies are cheaper in other parts of the country. It all depends on where you live. I have known people to get a $250,000 policy in one area and another to get a $250,000 policy with a $1 million umbrella policy for the same price. It just depends on where you are. Insurance companies factor in many things to determine how much to charge, feel free to ask you agent what they factor in.

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What Will Your Umbrella Policy Cover? What Doesn't It Cover?

Umbrella policies can be a great addition to your protection package, but make sure that you know what they will and will NOT cover. Just because you purchase the excess liability policy, doesn't mean that you are covered for every possible situation. It is better to know the limits and restrictions before you need them than to find out they aren't covered after the fact.

The following examples are only a brief description of some common situations that happen in real life. If you have any questions about your policy coverage or one that you are considering purchasing, be sure to check your policy or ask your agent before an issue arises.

What Is Covered:

1. Injury On Your Property - If someone falls on your property, trips over your child's scooter that was left on the sidewalk or one of your children's friends falls off the swing set in your back yard, you may be sued if they get hurt. Their injuries along with the potential legal costs and possible settlement will be covered.

2. Excess Auto Damages - If you or one of your covered family members are involved in an automobile accident that is your fault, the lawsuit that may follow along with any property damages and monetary settlement will be covered up to your policy maximum.

3. Dog Attacks - If your dog bites the paper boy, mail carrier, a jogger or one of your children's friends, you will probably be sued for damages. Even if the person has provoked your dog on your property and then gets bitten, they will probably be awarded a settlement.

4. Civil Suits - A lawsuit against you for libel, slander, false arrest and a variety of other personal liability issues will be covered. If they win a court award in excess of your homeowner liability limits, the umbrella coverage will protect you up to its limit.

5. Others Property Damage - If by chance your dog chews up your neighbors Persian rug that was drying in their yard, your son is hitting a baseball and it through your neighbors three-story high leaded glass window or your daughter is driving on an icy road and fails to stop before she hits the house on the corner, you are covered.

What Is Not Covered:

1. Your Property Damage - An umbrella policy usually will not cover damages to your own property as this is what you own homeowners and auto insurance limits should cover. If your damages are over the limits of your own policies, your umbrella will not cover them.

2. Professional Liability - If you are sued for any type of professional liability, errors and omissions or any type of malpractice claims, your personal umbrella will not cover any of these costs. You can buy commercial or professional liability policies that may cover some or all of these issues.

3. Farm Activities - Any possible activities that are related to a commercial or family farm that could bring a lawsuit against you will not be covered by a personal liability policy. If you are involved in farm activities, you should look into specific farm liability protection.

4. Employment Practices - If you are being sued for any issues related to employment practices like discriminatory hiring or firing, sexual harassment in the workplace or no-compete clause violations, these will generally not be covered by most personal liability umbrellas.

Summary: As you can see, many different things can happen in life and unfortunately we live in a very litigious society. As lawsuits continue to get larger and larger, making sure that you have an adequate amount of protection becomes imperative. Don't ignore the problem and hope it will never visit your family. Protect yourself, enjoy life ad sleep well at night.

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The Overview Of Umbrella Policies   Umbrellas, They're Not Just for Fruity Drinks   Five Things You Should Know About Liability Insurance   The Importance of Personal Liability Insurance   Thank Goodness I Have an Umbrella! So What Is It?