The Importance of Umbrella Insurance
Even if you already carry insurance on your car, boat, and house, that does not mean your personal assets will be safe from legal claims. Umbrella insurance was created as an instrument to fill in the gaps that lie beyond the limits of standard insurance policies, as well as address certain types of incidents that aren’t covered by standard policies. Think of this kind of financial protection as a safety net that provides an extra layer of security against liability claims made against you.
Who Needs It
Umbrella policies address a myriad of financial claims, some of which are already partially covered by one’s normal policies, including injuries to others and property loss. In most instances, this kind of insurance is activated when you are at fault and therefore liable for damage caused to something or someone. These policies can help cover costs that are the result of serious vehicular accidents for which you are found to be at fault, as well as personal injuries to someone who, for example, is visiting your home and slips and falls.
What It Does
Aside from various incidents involving injuries, good umbrella insurance can also protect your investments in personal belongings and property. The destruction of a rare or expensive item in your home, such as an antique or a fine piece of art, can be covered by this policy. Umbrella protection can mitigate the financial loss caused by your kids in a school environment or in any other shared environments, as well as protect your assets should you find yourself being sued for libel, slander, malicious prosecution and more.
A personal umbrella policy is a terrific way to protect yourself from extremely costly or unexpected financial claims. It is also a tool to safeguard your entire family’s assets from various claimants. Even if the limit on your auto or homeowners insurance policy seems adequate, that doesn’t mean it will protect you from the more extreme incidents that life can visit upon you. An umbrella policy is the best way to give you and your loved ones that extra added layer of financial security, so you, and your finances, are prepared for whatever might come down the pike.