Do You Have Umbrella Insurance?
Umbrella Insurance, the Most Important and Least Expensive Liability Insurance
The chances are you have the average vehicle policy coverage limits of liability – $100,000/$300,000.
Those figures represent the limits of your insurance protection for damages as a result of injuries you cause to others in an accident. However, if the damages exceed $100,000 per person or $300,000 per accident for all persons injured in the accident, you must pay the excess.
Umbrella Insurance Coverage
A standard umbrella policy covers all vehicles on your policy and your home for injuries caused to guests or visitors on your property. An umbrella policy also may cover libel or slander claims. For instance, posting a bad review or social media comment. You may also have coverage for malicious prosecution claims and overseas travels. Importantly, the policy limits begin at $1,000,000,00 and average only $230 per year.
Consequences of Inadequate Insurance Converage
A few years ago, someone I represented in my law practice neighbor’s child tripped on a Play Station cord while visiting his home and struck her head on a table. Tragically, the child suffered brain damage. However, my client had only $100,000 liability coverage on his home. Consequently, nearly everything my client earned over 20 years on the job was lost.
Another client came to my office to discuss an accident. She was stopped at a stop sign in Park Ridge, Illinois, at dusk. This suburb has few street lights and short concrete posts for street signs. Moreover, while inching forward to see the street name, she did not notice an older woman who stepped off the curb simultaneously. As a result, my client bumped the woman who fell and struck her head on the sidewalk. The woman died that evening. My client had a 100/300 policy and approximately $600,000 in net worth. There was nothing we could do to protect her savings or the equity in her family home.
The Other Drivers
Consider the flip side of you not having adequate coverage – the thousands of uninsured or underinsured drivers you drive alongside every single day. You must protect yourself from damages another driver with too little or no insurance might cause to you or someone in your household.
Whether it is your home or vehicle, the time to ensure that you are adequately protected is now – before you drive again or invite a guest into your home.
Contact CBA today for help finding the right Umbrella Insurance coverage.
Please visit your Police Benefits Plan for more detail. Or you can contact me directly for more information.
Police Benefits Plan
For an expanded presentation of asset protection strategies and to receive regular updates on strategies to protect what you have earned, visit and register with the Police Benefits Plan on the link below. Registration for police, retirees, and families is free.
Visit Police Benefits Plan or call 1-312-559-8444 for assistance with registering.
Tom Tuohy is the founder of Tuohy Law Offices and the Police Benefits Plan. He has been a police lawyer for over three decades. His father was a CPD detective, and his grandfather was CPD Chief of Major Investigations. You can reach Tom at 312-559-8400 or in his Oakbrook Terrace offices.