How High-Limit Umbrella Insurance Can Protect Your Assets

High-limit umbrella insurance can protect your assets and ensure you have collateral to sustain them. Unless you have aspirations to appear on daytime court TV, you’ve probably never pondered the threat of a lawsuit. Indeed, most people will never be in this situation, but the possibility still exists. This possibility may turn into reality if you get into an accident. Regardless of whether you are at fault, the other party may sue you and try to collect damages. High-limit umbrella insurance can offer the protection you need to shield your assets in this situation.

High-Limit Umbrella Insurance Creates a Buffer

It also creates a buffer between your assets and your liability. If you are facing a lawsuit from somebody who seeks $150,000 in damages, for example, everything you own is suddenly at risk. If they win, the suit could result in a judgment that requires you to liquidate your assets. You may face a lien against your home. Your vehicles, cash, and other assets could be up for grabs, too. Umbrella insurance protects you from this outcome by implementing a financial buffer. Your policy’s value can cover a judgment so that your assets are safe.

High-Limit Umbrella Insurance Covers Miscellaneous Liabilities

High-limit umbrella insurance is also beneficial because it covers many liabilities. As an individual, you probably don’t engage in many activities that would make you a target for litigation. Sometimes a person is in the wrong place at the wrong time, though, and litigation emerges nonetheless. Consider the many lawsuits against individuals, for example, that allege damage from social media — one such lawsuit resulted in a $500,000 judgment. Protect yourself from miscellaneous liabilities like these with an umbrella insurance policy.

High-Limit Umbrella Insurance Can Cover Costly Risks

If you face a lawsuit — whether it’s from an accident, social media post, or another incident — you need a policy that adequately covers the potential damages. If a policy’s value is only $100,000, but you face a judgment of $300,000, your assets remain vulnerable to liens and seizure. It is why a high-limit policy offers the best protection. You can enjoy peace of mind with insurance that accounts for costly risks.

High-Limit Umbrella Insurance Offers Additional Coverage

  • Most people invest in high-limit umbrella insurance to complement their existing insurance coverage. For example, you likely already have auto and homeowners’ insurance, but this insurance’s coverage and policy limits may leave your assets unprotected. Investing in an umbrella policy extends your coverage past the bare minimum. More importantly, it shields your assets from litigation. A lawsuit shouldn’t cost you your home, cars, or valuables — and when you invest in the right high-limit umbrella insurance coverage, it won’t.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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