Do You Need Umbrella Insurance?
Umbrella insurance is a type of liability insurance that provides additional protection beyond the limits of your existing insurance policies.
It's designed to protect you from major financial losses in the event that you are held liable for damages or injuries caused to others.
Here are 2 typical examples:
Example 1: You got into an auto accident with another driver. The other driver sues you for $500,000 for damages and medical expenses and wins. Your auto insurance liability limit is $300,000. In this case, your umbrella insurance policy will provide the additional $200,000.
Example 2: You were hosting a party at your home, and a guest slips and falls on your property. The medical expenses for his injuries come out to be $350,000. The liability limit of your homeowners insurance policy is $300,000. In this case, your umbrella insurance policy will cover the remaining $50,000.
Without an umbrella to cover the gap, your personal assets (home, investments, savings) are next in line to cover the remaining amount.
Umbrella insurance can provide coverage for a wide range of incidents, including:
· Bodily injury: If someone is injured on your property or as a result of your actions, umbrella insurance can provide additional coverage beyond the limits of your homeowners or auto insurance policy.
· Property damage: If you cause damage to someone else's property, umbrella insurance can provide additional coverage beyond the limits of your homeowners or auto insurance policy.
· Personal liability: Umbrella insurance can provide protection if you are sued for defamation, invasion of privacy, or other personal liability issues.
· Advertising injury: Umbrella insurance can provide coverage for advertising-related injuries such as plagiarism, infringement of copyright and trademark.
If you don't have an umbrella policy and you have any personal assets, I encourage you to call your local insurance agent today for a quote. The premium is well worth the peace of mind of avoiding a financial disaster.
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