Most people believe that they have enough insurance coverage to protect themselves in the event of a liability claim. However, if the claim is large enough, your standard policies may not provide you with the protection you need. For example, if you are in a car accident and you cause $600,000 worth of injuries but your auto insurance policy limits payouts for injuries to $350,000, you would need to find a way to come up with the other $250,000 on your own! In addition, your insurance policies may not cover the legal fees you will need to pay to defend yourself in court. Since few people have enough extra cash to cover all of these potential expenses, it’s a good idea to invest in umbrella insurance.
How does umbrella work?
An umbrella insurance policy opens in a new window is a policy that provides extra coverage above and beyond the limits of your other basic policies, including your auto insurance and homeowner’s insurance. If you need to pay damages in excess of these policy limits, or if you are sued and you need to pay for a legal defense, your umbrella insurance policy will cover the costs. However, your umbrella insurance will only pay the portion of the damages or expenses that aren’t already covered by your other policies.
Just like any other insurance policy, umbrella insurance has a limit. If the damages or expenses you incur exceed the limits of your standard policies and your umbrella insurance, you will be responsible for paying the rest on your own.
What does personal umbrella insurance cover?
Personal umbrella insurance opens in a new window provides excess liability coverage for both property damage liability claims and bodily injury liability claims. It also offers coverage for slander, libel, false arrest, and legal fees. The coverage limits of personal umbrella insurance vary.
What are the benefits of umbrella insurance?
If you have assets you don’t want to lose, it’s smart to consider this type of coverage. Some of the specific benefits of umbrella insurance include:
- Protection for valuable assets – Having umbrella insurance ensures that your valuable assets aren’t exposed in the event of a lawsuit that exceeds the limits of your standard liability policies.
- Peace of mind – When you have umbrella insurance, you will enjoy the peace of mind that comes with knowing your most important possessions are protected.
- Extra benefits– Umbrella insurance provides coverage for many scenarios that may not be covered by your other policies, such as libel and legal fees.
- Standard homeowner’s insurance and auto insurance policies may not provide all of the protection you need in the event of an expensive lawsuit.
- Umbrella insurance provides extra coverage above and beyond the limits of these standard policies.
- An independent insurance agent can help you find the best umbrella insurance policy for you.
If you’re interested in umbrella insurance, you have many different options. To ensure that you find the best option for your needs, you need to consult an independent insurance agent who can compare policies from all of the best umbrella insurance companies and help you select the right one.
At Marine Agency, we understand how important it is for you to protect your assets without going over budget on the cost of insurance. Please contact us today and we will be happy to help you find a policy that meets your needs.