Do I Need Excess Liability Coverage Don t End Up Like Mary and John
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
Do I Need Excess Liability Coverage? Don't End Up Like Mary and John
Summary
Learn how excess liability coverage or an umbrella policy can protect you from unforeseen damages and financial loss.---
A Cautionary Tale: Mary and John’s Story
Mary and John, a retired couple living in a beautiful five-bedroom home in California, faced a situation they never anticipated. Their home, valued at $900,000, was paid off, allowing them a comfortable retirement with minimal bills. However, their financial security was suddenly threatened.
One spring day, Mary accidentally hit the accelerator instead of the brake while parking her car at a local grocery store. The car crashed through the store’s wall and injured two pedestrians. This accident set off a chain of events they were unprepared for.
Although Mary and John had auto insurance, they discovered that the damages exceeded their policy limits. Consequently, they were personally liable for the additional costs. The pedestrians’ attorney conducted an asset check and found that Mary and John owned a home, putting it at risk.
The couple was devastated to learn that their most valuable asset?"their home?"might be at stake. If only they had known about the benefits of excess liability coverage or an umbrella policy, they could have avoided this precarious situation.
Understanding Excess Liability Coverage and Umbrella Policies
Excess liability coverage, also known as an umbrella policy, provides an additional layer of protection beyond your standard homeowners or auto insurance policies. This type of coverage can be crucial when you’re liable for damages that exceed your primary insurance limits.
Here’s why you should consider it:
- Affordability: For the peace of mind it offers, excess liability coverage is quite affordable, typically ranging from $150 to $400 annually.
- Asset Protection: If you own significant assets, especially a home, this coverage ensures your investments are safeguarded.
- Peace of Mind: Knowing you’re protected from unexpected claims brings peace of mind, allowing you to enjoy your retirement or any stage of life without undue stress.
Taking the Next Steps
If you have substantial assets like Mary and John, consult your insurance company about excess liability or umbrella coverage. A small annual fee can protect you from potential financial devastation, offering a safety net when you need it most.
By being proactive, you can avoid the pitfalls that Mary and John faced and secure your financial future with confidence. Don’t leave your assets vulnerable?"explore excess liability coverage today.
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