Let’s paint a figurative picture.
Think of yourself standing out in the rain. Your first layer of protection from getting drenched is your rain coat. That may be enough for the amount of rain that’s coming down but if it starts raining cats and dogs, an umbrella will provide you with much better coverage.
Now let’s compare the insurance equivalents to the rain, your rain coat, and the umbrella. The rain is when a guest (ie. delivery person) falls on your sidewalk and is seriously injured and you are found legally responsible for the injury.
Your rain coat is your standard homeowner’s policy which provides you with a limited amount of liability coverage. Not all rain coats are made the same; some offer better protection against the “rain”.
Finally, the umbrella represents Umbrella Liability Insurance that provides an EXTRA level of coverage for when your raincoat just can’t protect you from all the rain.
How much coverage do you really need?
That all depends on the value of your total assets as well as your potential personal risks. For example, if you operate a business in your home and have employees and clients in and out of your home on a regular basis you are likely to have more of a risk of being found legally responsible for an accident.
Umbrellas come in all different sizes so it’s about finding the right umbrella that will protect you best when it rains. And unfortunately when it rains, it pours!
You may want to consider Personal Umbrella Insurance after answering these questions:
- Do you volunteer or drive your kids around?
- Do you entertain at home?
- Did you know there is personal liability insurance that covers your entire family, even your children while they are away from school?
- Do you own a cottage, rental property, watercraft, snowmobile, or ATV?
- Did you know there is personal liability coverage that will cover you if you are sued for causing bodily injury or property damage or for libel, slander, and defamation of character?