The Most Unappreciated, Underutilized Policy every American Needs to Have: 

     The Umbrella Policy is not common knowledge, but it should be! Whether it's a supplement to your personal lines policies (Auto/Homeowners) or Extended coverage for your business, it can save you in the event of a major claim. 

     Make no mistake about it, in these rough economic times, lawsuits will try to squeeze every dime out of your wallet. Between medical expenses, physical and mental angst charges, and punitive damages... A lawsuit of $1,000,000 is becoming common. 

     Your homeowners, auto, and commercial policies have limits and when they are exhausted, you can be left to pay the remainder of the claim. Umbrella insurance can extend your coverage once your underlying limits are exhausted. 

• What If Scenario #1 Someone gets injured on your property?! Your homeowners coverage will protect you, but only up to the limits of your policy and only if the injury did NOT involve an excluded peril, such as molestation, physical abuse and so on (check your policy for exclusions or bring it to us to help you review). As we mentioned in the introduction, lawsuits can exceed the limits of your policy. If for example, you only carry a $300,000 limit and are sued for $500,000. You can be ordered to be responsible for the other $200,000 out of your own pocket, through liquidation of your assets; your home, your car, or investment accounts and even through wage garnishment! 

• What If Scenario #2 I'm sued over an accident I caused?! Just like with a homeowners liability claim, your auto policy will respond first. But, just like with your homeowners coverage, as soon as the limits are exhausted, you would be liable for the remaining balance. 
  

• What's the bottom line? Umbrella acts as a policy that raises the limits of all of it's underlying policies. It is very affordable and protects you from a situation of a lawsuit ruining your life.

• Do you really need One?  We believe that every American needs one but in the end it is your choice. If you like controlling your financial security or value your assets, you should purchase Umbrella insurance. If you don't like all the things you've worked so hard for or want to give up money from your hard earned wages, then no you don't need one.    

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   - Contributions from PIANJ and Insurance Journal 

   Need Insurance? Or have questions about your current policies? Call a Borgos, Hanlon, Henry, and Garcia Agent today for more information.