Standard Philadelphia insurance products for auto, homeowners’ and renters’ insurance provide sufficient liability protection for many policy holders. People who have significant assets often purchase additional umbrella insurance to protect themselves and their assets from the financial consequences of being sued.

Umbrella insurance is an extra layer of insurance protection that supplements the liability coverage of a standard auto, homeowners’ or renters’ insurance policy. The extra umbrella coverage kicks in when you have exhausted the liability limit on the standard policy.

Let’s consider auto insurance as an example. Philadelphia law requires you to carry insurance for bodily injury of at least $15,000 per individual and $30,000 per accident. A person who is seriously injured in a car accident is entitled to pursue a claim against you that is in excess of your standard policy limits. If the claim is successful and the court awards damages of $500,000, you may be liable for the additional $485,000 and if you don’t have sufficient funds to cover the amount awarded your assets may be liquidated. Purchasing umbrella coverage can help to protect your home, savings and investments from the risk of being sued for an amount in excess of the liability limit of your standard auto insurance policy.

A Philadelphia insurance agency will be happy to work with you to find the best value umbrella insurance coverage to protect your assets from the risk of being liquidated to pay for damages that are awarded against you. In our litigious society, it’s important to carry adequate liability protection.
 

*