No matter how much money people have or what kind of occupation they do, the need for liability insurance can’t be overestimated. People who own homes and drive routinely take on potential risks that could result in very costly legal judgments against them. Homeowners and auto owners are liable for injuries or damages caused by driving or some home condition that might cause property loss for one or more people. And homes and autos are just two types of property for which their owners are held liable for losses others incur as a result of their use. Fortunately, an umbrella insurance policy is an affordable way to protect against costly legal settlements and court judgments.
Umbrella Insurance Offers Broad Liability Coverage
An umbrella insurance policy will cover the costs up to policy limits that auto insurance, homeowners insurance, commercial insurance, 
professional liability and others don’t due to coverage limits. The policies are affordable because of the underlying insurance coverages that handle the majority of claims people encounter. A minor car accident or damage caused by using of a home, such as a child sending a baseball through a neighbor’s picture window while playing, will be covered by auto insurance and homeowners insurance. The same goes for professional liability insurance policies, such as errors and omissions for financial advisors, insurance agents, attorneys and other professionals. But when those policies reach their coverage limits and there is a large balance owed, an umbrella insurance policy would cover those costs with many policies starting offering a minimum $1 million for very reasonable rates.
Auto Liability Easily Exceeded
Whenever driving, there is a potential to wind up liable for very costly injuries and damages to others, particularly in larger cities where there are more people and vehicles. Those who carry state minimum liability limits in Nevada and elsewhere easily can exceed their liability coverage. But an umbrella insurance policy would cover those costs as well as the legal costs of dealing with potential lawsuits and prevent a possible bankruptcy or other financial disaster.
Have you ever been at fault in an auto accident and though you might be sued?