As a responsible adult, you already know that insurance is essential for protecting your assets and providing peace of mind. However, you may not be familiar with a type of coverage called umbrella insurance. In this blog post, we’ll explain what umbrella insurance is, how it works, and why you might need it.
What is Umbrella Insurance?
Umbrella insurance is a type of liability insurance that provides extra protection beyond the limits of your home, auto, or other policies. Think of it as an umbrella that extends over your other insurance policies to provide an additional layer of coverage. Umbrella insurance can protect you from a variety of risks, such as bodily injury, property damage, and legal fees.
How does Umbrella Insurance work?
Let’s say you’re involved in a car accident that causes significant property damage and injures the other driver. If the damages exceed your auto insurance policy’s limits, you may be personally liable for the excess amount. Without umbrella insurance, you would be responsible for paying the difference out of your own pocket. However, if you have umbrella insurance, it would kick in to cover the excess amount up to the limit of the policy.
Why do I need Umbrella Insurance?
You may be wondering if umbrella insurance is necessary for you. The truth is that anyone can benefit from this type of coverage, but some people are more at risk than others. For example, if you have significant assets, you are more likely to be targeted in a lawsuit. Additionally, if you have a high-risk occupation, own rental properties, other valuable assets, or have a pool or trampoline in your yard, you are more susceptible to liability claims.
Here are some reasons why you might consider umbrella insurance:
- Protect your assets: If you have substantial assets, such as a home, investments, or savings, umbrella insurance can provide an additional layer of protection. If you are sued and found liable for damages that exceed the limits of your primary insurance policies, your assets could be at risk.
- Peace of mind: Knowing that you have umbrella insurance can help you sleep better at night. It can provide a safety net in case of unexpected events that could otherwise have a devastating impact on your finances. An umbrella policy can protect you and your family financially against a 1-in-a-million event.
- Affordability: Umbrella insurance is relatively affordable compared to the amount of coverage it provides. For a few hundred dollars a year, you can get a million dollars or more in additional liability coverage. It is affordable because your underlying home, auto, and other insurance policies would pay first in the event of a claim.
How much Umbrella Insurance do I need?
The amount of umbrella insurance you need depends on your individual circumstances. Generally, it’s a good idea to have enough coverage to protect your assets in case of a lawsuit. The more assets you have, the more coverage you may need. The most popular umbrella limits are $1 million, $2 million, and $5 million, but each insurance company has their variety of choices.
Your insurance agent can help you determine how much umbrella insurance is right for you. They will take into account your assets, your occupation/income, your lifestyle, and other factors to recommend a suitable amount of coverage.
Final Thoughts
Umbrella insurance is an essential type of coverage that can protect you from unforeseen liability risks. It can provide peace of mind, financial security, and protection for your assets. Contact one of our agents at (305) 452-0587 or visit our website at www.ensureup.com to fill out our quote form.