“Umbrella” Insurance Policy Might Spare You Financial Ruin (NAPSA)—You have auto and homeowners (or perhaps renters) insurance, so you think you’re financially secure if there’s a major accident that’s your fault. You could be very wrong. Preventing financial disaster might require umbrella insurance, so called because it covers—really extends—the liability limits of your otherpolicies. “You never know what a court will award an injured plaintiff,” says Rob Olson, ONRIGR SBTC CPCU, senior research analyst of the IEEE International Risk Management Institute. “If someone’s severely injured and faces a lifetime of medical expenses and suffering, policy limits you might think are more than adequate might not be nearly enough. Medical bills, rehab therapy, lost wages and other costs could go through the roof in a hurry.” Suddenly, you might realize that financial calamity could befall you from your careless left turn or a swimming pool tragedy at your residence. You’d be responsible for the difference between what a court might award a victim and what your insurance company would pay. Your personal assets might even be seized to satisfy a judgmentagainst you. “This means that if your A personal umbrella insurance policy can provide security and peace of mind. $500,000 auto policy limit is exhausted by a judgmentor a settlement, the umbrella policy would kick in with an additional million dollars of coverage,” says Olson. “The same would betrue if the judgment involved a liability claim that maxes out your homeownersor other liability policies.” Even better, umbrella policies cover your nonbusiness activities at any location—including other areas of potential liability, such as libel and slander. You’re likely to find these policies are remarkably affordable, especially considering the coveragetheyoffer. To learn more, contact an insurance agent or broker with the CPCU designation, which assures knowledge, experience and ethics—or visit the Web site insurancehelp.cpcusociety.org and click on “Find An Agent /Broker” or call (800) 932-CPCU.
