Dispelling Umbrella Insurance Myths It’s easy to tell yourself that you’ll probably never need to purchase extra liability insurance. After all, your chances of being hit with a multimillion-dollar lawsuit may be fairly slim. And besides, wouldn’t the liability coverage on your standard homeowners and auto insurance policies be enough to protect you against a claim or a lawsuit? Before you make such an assumption — and underestimate the importance of having enough liability protection — consider that between 2001 and 2007, the average jury award for all liability cases increased by almost 62%. 1 If you had liability coverage, how much did it increase during this period? Unfortunately, there are a number of misconceptions about umbrella liability insurance that could cause you to be underinsured. “My other policies should provide enough coverage.” Standard auto and homeowners insurance policies typically offer between $300,000 and $500,000 in liability coverage. If you’re ever found liable for an amount
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This note was uploaded on 02/29/2012 for the course BUSINESS 100 taught by Professor Allprofessor during the Spring '12 term at Virginia College.