Umbrella insurance is not just for the one percent – it offers extensive protection to all.
Insurance exists to that you can tackle the unexpected without shelling out all of your hard-earned savings. (And then some!) Fortunately, umbrella insurance goes a step beyond that as it extends the limits of your primary policies, rendering your coverage to be much more valuable.
Many homeowners and motorists tend to purchase a basic insurance policy, pay it monthly, and renew it each year. While home and auto insurance policies offer protection, there’s always a possibility that an unfortunate incident could wind up costing you hundreds of thousands of dollars in legal fees or property damage. When this happens, many are disappointed to find that their insurance only covers up to a certain limit.
An umbrella insurance policy kicks in after you have a costly accident once you’ve exceeded the limits of your home and auto policies! If you think you’re safe from needing a policy, check out the three instances below:
Car accident involving multiple cars
If you’re ever at fault for a major accident involving several cars carrying multiple passengers, your auto coverage may not cover enough to keep you from depleting your savings. Your auto policy may quickly become exhausted, which means that you’ll foot the bill for any remaining damages and medical bills.
A visitor is injured
For those who have a swimming pool, trampoline, or playground equipment, should someone suffer a serious injury while playing, you could be responsible for some hefty medical bills and an expensive lawsuit. Your homeowners insurance policy offers a certain limit of liability protection, but anything over that is on you to cover!
Your dog bites someone
If your beloved pup nips someone, that person could cost you thousands of dollars in medical treatment and maybe even bring about a nasty lawsuit. Dog-bite liability can be particularly costly, depending on the damage done by your furry friend. If you max out any protection you may have on your homeowners policy, that gap in coverage could easily be thousands more than you’ve got in the bank!
Fortunately, an umbrella policy kicks in when you’ve exhausted your standard insurance policies! Not only does it give you liability protection for an accident worth more than you have in the bank, it provides you with the protection for others in the household, and the peace of mind of all-encompassing coverage!