If you already have auto or home insurance, then you may feel protected from just about any situation. However, with liability claims in which you are personally sued, the process can be unpredictable. Medical expenses can add up, and there isn’t a predetermined value on someone’s damages. With the addition of an umbrella policy, you get an extra layer of protection on top of the liability coverage on your pre-existing policies. Often umbrella policies are relatively inexpensive for this additional liability coverage. Policies typically start at one million dollars in coverage and only cost hundreds of dollars.
How Does Umbrella Insurance Protect Your Assets?
With an umbrella policy, you will get extra liability coverage for your home, auto, or other products where you have personal insurance in place. For example, If you have been found legally liable for an accident on your home or auto policy, your current policy’s insurance company will pay the policy limit. Any expenses above that limit would typically have to be paid by you; If you don’t have that money set aside, this can threaten your home and vehicles, as well as your savings, investment accounts, and future wages. In addition, if you have a multi-car accident, the cost can quickly add up between injuries and damages – often over the amount set in your auto policy. Even injuries that happen right in your backyard can be costly. Umbrella insurance helps protect you from the unexpected since you never know when an accident can happen.
