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  • 6 Reasons You Need a Personal Umbrella Policy

    Lori Richardson, CIC, Hybrid Producer

    Did you know an estimated 7.8% of all Michigan residents are uninsured drivers?  If they don’t carry auto insurance, there is a strong possibility they may not have health insurance either.  If you cause an accident and cause them bodily injury, is it likely they will sue you?  Absolutely!  What’s even worse is the injured parties don’t even have to look for an attorney; the attorneys will find them!  Please refer to the attached real-life example.

    There have always been good reasons to buy a personal umbrella insurance policy, but now it is even more important with the No-Fault reform that changed PIP (personal injury protection) coverage in July of 2020.  An umbrella policy sits over your primary insurance policies and provides additional limits of liability to protect you from a downpour – that worst-case scenario where you could lose everything in a lawsuit.  It protects your assets, as well as your future earnings, which can be garnished if you’re found liable. 

              6 reasons you need a personal umbrella policy:

    1. You have teenage drivers.
    2. You like to entertain a lot (if a guest leaves the party and injures anyone while driving under the influence, you could be sued for negligence).  This is known as “social host liability”.
    3. You have a swimming pool or live on a lake.
    4. You own a dog.
    5. You own a second home.
    6. Effective July 2, 2020, Michigan’s new PIP laws allow people to choose their own PIP (medical) limits and many people are opting for lower limits to save money. Under the new laws, there is nothing to prevent anyone from suing you, if you or a member of your household causes them bodily injury. 

    Why put your savings, assets, and future earnings in jeopardy?  Umbrella insurance policies typically start at $1 million in coverage and can go up in million-dollar increments as needed.  They are also extremely affordable.  The average umbrella policy is only a couple hundred dollars a year.  That is less than you’ll pay for one hour of an attorney’s time and pretty affordable peace of mind!   

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      6 Reasons You Need a Personal Umbrella Policy