The average jury awarded judgment in Tennessee for a liability case, whether it’s auto or home, is around $500,000. So if you don’t have enough coverage on your auto or your home, then there’s a balance due. After that judgment comes in, they go down your list of assets and your home is one of those assets to find a way you can pay the difference owed between the judgment amount and what the insurance company will pay.
What is an Umbrella Coverage?
Umbrella coverage is a liability-only policy that fits on top of your auto and your home liability. It will extend that liability coverage, up to a million or 5 million or whatever the appropriate level is, in addition to the liability coverage that’s included in that policy.
If you have a $250,000 liability piece to your homeowners covered, and you have a $1,000,000 umbrella policy, then now you’re gonna have $1,250,000 in total coverage. If the primary policy of homeowners or your auto determines that you’re responsible for that liability, then it will automatically kick up to that umbrella.
How much does an Umbrella Policy?
It’s a very affordable tool to manage and protect yourself. For most people, there are a lot of factors that go into the pricing of it, but you’re going to be less than $300 a year for $2 million of additional ability for most people. In today’s world, It’s the best $25 a month you’ll spend.
If you’re thinking of buying a home in the Middle Tennessee market and considering getting an umbrella policy, give me a call at (615) 930-0313, schedule a call with me, or send me a message! I love helping people and using my financial and legal background to guide you in finding your dream home!