A personal umbrella is the purest expression of why insurance was created. In the event of a potential financial catastrophe, a personal umbrella comes to the rescue. It provides excess liability protection over your primary auto and homeowners liability limits.
Your auto insurance policy will cover accidents. However, if you accidentally hit a Ferrari instead of a Ford (not so hard to image in California), or if a moment of distraction (texting, eating a burger, changing your XM radio) results in deaths or permanent disabilities to drivers, passengers, or pedestrians.Your auto insurance alone may not be adequate to pay for the losses. Any amounts that your insurance does not cover will come from your assets or garnished wages, and could easily result in your personal bankruptcy.
Similarly, your homeowners policy will cover most personal, non-auto related accidents on your property and elsewhere, and a personal injury endorsement will provide coverage for libel or slander. All golfers occasionally hit an errant shot.What happens if your ball hits someone and causes permanent injury? Do you have a dog? A pool? A rental property? None of us would intentionally injure or kill someone, and that's why it's called an accident. All you need to do is watch the 11:00 news once, and you'll see some of the terrible things that happen to "those people." A personal umbrella can't keep you from becoming one of "those people," but it can protect you from the ensuing financial firestorm if you do.
Umbrella policies are inexpensive since the odds of such a loss are low, however; the peace of mind an umbrella can provide is priceless. A very small investment in insurance can protect you against the unthinkable.
Please check with your Jaffe Insurance Agency representative for more information about this important element in your insurance portfolio.