Southport Magazine

Did you know that if your dog bites someone at the park, you could end up with the medical bills? And if your child posts defamatory information online, you may owe for damages? Even if someone is accidentally injured while on your property, you may be the one liable.

You can prepare for the unexpected and unintended by investing in personal liability umbrella coverage.

How does it work?
Home and auto insurance typically include some liability coverage, and it can be added to renters insurance for a fee. You can also purchase a Personal Liability Umbrella Policy in addition to underlying policies if you want extra coverage—which can be smart.
“We live in a very litigious society,” says Michael Barry, vice president of media relations for the Insurance Information Institute (III). “The liability insurance on your home or auto policy could be exhausted quickly if you were to be sued. Umbrella liability steps in to fill the coverage gap.”

Is it affordable?
The III estimates that $1 million in personal liability insurance costs $150 to $300 per year. You could benefit by budgeting for the expense. “It’s a wise move as part of an overall plan to protect your assets,” Barry explains.

What does it cover?
Personal liability umbrella insurance may cover damages and legal fees if you’re found at fault in certain situations. This coverage may include incidents that happen away from your home, involve “attractive nuisances” such as pools or trampolines, and that aren’t typically covered by home and auto policies, such as defamation of character, libel and slander.

What are its limits?
Personal liability umbrella insurance won’t cover injury or property damage related to business. If you work out of your house, look into other options for protecting your home-based business.