| John and Mary live in a nice five bedroom home | | | | any money damages which exceeded the liability |
| located in California. They've lived in their three | | | | limits that they carried. |
| thousand square foot home for twenty five years | | | | The adjuster also told them that the pedestrians |
| and are retired. Their home is paid for and worth | | | | attorney did an asset check to see if Mary and John |
| about $900,000. They live off their retirement and | | | | owned property. The attorney found out that they |
| have hardly no bills to pay. John and Mary have | | | | owned a home and would be expecting them to |
| always had a homeowners policy to cover their | | | | contribute additional monies towards the settlement |
| home in case of fire, theft or other potential losses | | | | of the pedestrians claims in addition to the auto |
| involving their home. Mary is age 75 and John is age | | | | insurance liability limits that they carried. Mary and |
| 72. They hope to someday leave their home to their | | | | John were devastated and did not realize that their |
| adult children. | | | | home the most valuable asset they owned was at |
| On a nice spring day, Mary went to run some errands | | | | stake! |
| in her vehicle around her neighborhood. She pulled into | | | | They worked all their lives for their home and could |
| the parking lot of her local grocery store. For some | | | | not believe that it may be at risk due to the |
| reason, after Mary parked her car , her foot slipped | | | | accident. John and Mary did not know they may have |
| off the brake and hit the accelerator instead. Mary's | | | | avoided contributing monies towards the pedestrians |
| car went through the wall of the grocery store. Her | | | | injury claims if they had excess liability coverage or |
| vehicle continued through the wall of the store and | | | | an umbrella policy! |
| she collided into two pedestrians who were standing | | | | What is excess liability coverage or an umbrella |
| in line with their grocery carts. | | | | policy? This policy would be liability coverage which |
| Both of the pedestrians were rushed to the hospital | | | | would exceed your homeowners or vehicle policy for |
| due to the severity of the injuries they sustained | | | | damages you may be liable for. |
| from Mary's car striking them. Mary was upset about | | | | The cost of excess liability coverage or an umbrella |
| the accident and did not know what she should do. | | | | policy is very minimal for the amount of additional |
| She called her insurance agent the same day of the | | | | coverage you would receive. You can expect to pay |
| accident and her agent took her information to start | | | | somewhere between $150-$400 annually for this |
| processing her claim. | | | | coverage. Consult your insurance company for details. |
| Months later after the accident, Mary and John found | | | | Remember, excess coverage is important for you to |
| out that the damages filed by the two pedestrians | | | | consider if your assets are substantial, especially |
| injured from the accident, exceeded the auto | | | | being a homeowner. This extra protection may give |
| insurance liability limits that they carried with their | | | | you better peace of mind in the long run and will be |
| insurance company. John and Mary found out from | | | | well worth it! |
| their adjuster that they would be personally liable for | | | | |