From Louisville to Lexington and from Paducah to Summit, Kentucky residents unwittingly underinsure themselves every day. This state has a unique way of lulling you into a mode of thinking that reflects the green pastures all around you; and, while that is not necessarily a bad thing, being prepared for the worst can help you manage the bad times. Whether it is your home insurance or your vehicle policy, liability coverage is the one aspect of your insurance policies that protects your personal assets from losses due to lawsuits. But is your standard policy enough to cover every risk?
Taking into consideration your bank accounts, retirement accounts, stock portfolios and owned real estate, even a $1 million coverage limit may not be enough. If you cannot raise your current coverage amount but wish to, you may want assistance finding a Kentucky umbrella insurance policy. This extra liability insurance provides protection on top of your current liability coverage.
Examples of Potential Claims that May Require Umbrella Coverage
- Your dog bites a visitor to your home. The injuries require hospitalization and you are sued for medical costs and punitive damages. Your home liability policy limit is not high enough to cover the assessed judgment.
- You are involved in an accident while operating your ATV. The injured party sues you for damages and injuries. You only carry minimum liability coverage on your ATV and it does not come close to covering the costs of the legal judgment.
- Your teenage child borrows a friend’s car and is at fault for a major injury-causing collision while driving it. The friend’s parents and the injured party both sue you, resulting in $1.5 million in legal judgments, far exceeding the limits of your auto insurance.
These are extreme cases, but that is the real reason for umbrella liability coverage. It is not meant for everyday things but instead serves as a safety net for extreme unforeseen situations.
What Is Kentucky Umbrella Insurance?
Umbrella insurance is essentially extra insurance. This liability policy will help cover the excess legal costs and damages if you are found responsible for an injury or property damage that exceeds the limits of your regular insurance policy. In today’s litigious society, settlement amounts of millions of dollars are not unheard of. Your $500,000 basic-liability policy will only put a dent in that type of settlement amount. A regular liability policy will have a maximum amount of coverage that can be purchased, but if you want to have additional protection, you need to purchase a Kentucky umbrella insurance policy.
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Do I Need Kentucky Umbrella Insurance?
Whether or not this type is policy is right for you really depends on your current and expected future circumstances. Accidents can happen to anyone, and the main purpose of a lawsuit is to enable the victim to be compensated. If you have no means of acquiring compensation beyond what your current insurance policy offers, the victim may be dissuaded from filing a lawsuit to collect more based on legal advice.
On the other hand, if you have a lot in assets that can be liquidated to cover additional costs, a lawsuit may be likely, and that is when umbrella insurance becomes necessary. Even if you prevail in the liability lawsuit, your legal defense costs can be extremely expensive. If you have a sizable amount of personal assets, investing in an umbrella policy is a very wise decision as it provides is an affordable way to protect your finances from losses due to liability lawsuits. If you are not sure whether or not you need an umbrella policy, consult a financial advisor, insurance professional or legal consultant for advice. That way, you can best determine your total financial worth and decide whether your current insurance plan leaves you vulnerable.
How Do I Choose a Policy?
Most Kentucky umbrella insurance policies will start at $1 million in coverage and increase from there. If you wish to purchase an umbrella insurance policy, you can ask a local agent for advice about how much coverage is appropriate for you. Even something as minor as owning a dog can put you at a much higher risk of being sued. Protect what you have worked for by securing an umbrella insurance policy today. Our agents can help you compare Kentucky umbrella insurance quotes to find a competitively priced and highly-rated policy.
Find an agent near you today to learn more about Kentucky umbrella insurance.