Everybody knows that it’s important to have Umbrella insurance coverage in your daily life. From your business to your home to your car, you’ve likely taken out many different policies to protect your interests in the event of an accident where you are found liable or damage from outside your control. Unfortunately, sometimes the insurance you have is not enough. Many people only discover this is the case when the time comes for them to file a claim and they learn that not everything they need is accounted for. That’s where this coverage comes in. If you’re asking what is umbrella insurance anyways, this guide has everything you need to know to get covered.
What Is Umbrella Insurance?
What does umbrella insurance cover if you purchase it? The easiest way to think about it is that umbrella insurance serves as a second line of protection in addition to your standard insurance coverage. This can show itself in a variety of ways. If you reach the limit of protections provided by your other insurance coverage, you could be on the hook for the entirety of the remaining balance if you do not have any coverage.
Extra financial protection in the event of settlements against you is not the only value that umbrella protection provides. If you have an umbrella insurance policy, it can also be used to get reimbursement for legal fees related to cases that you won. Without umbrella protection, even if you are in the right, it can cost you a great deal of money in legal fees in order to prove your position, which can be financially crippling. By adding this coverage to your policy, you know that you have the ability to fight for your rights without fear that the lawyers will leave you destitute with their fees.
What About My Other Coverage?
An easy misunderstanding to make about this type of insurance is that it can replace your other forms of personal insurance, but this is not the intended use of such a policy. For example, carrying an umbrella insurance policy does not mean you are free from any obligations to have purchased car insurance when you own a vehicle. Although you can turn to your umbrella policy in the event of being found liable for damages that exceed your auto policy, you are still required by law to carry car insurance before driving. Remember, umbrella insurance is supplemental coverage, not primary.
Do I Need Umbrella Insurance?
In that case, what is umbrella insurance bringing to the table, if you still need to keep your other forms of insurance? It gives added peace of mind, as well as coverage in some instances where you would not otherwise be protected. There are many different reasons you would want to consider purchasing umbrella insurance. Individuals who own and operate vehicles are risking financial ruin if they cause a major accident and have insufficient auto insurance. Similarly, if you own pets that can bite or are a landlord in charge of a property, you may end up on the hook for expensive settlements if you don’t have insurance backing up your homeowner’s insurance.
Umbrella insurance is also a valuable protection for individuals working in the media. Most standard forms of personal insurance are not responsible in the event of a slander or libel lawsuit, but do you know what is?
In short, almost everyone who has an insurance policy of any sort would likely benefit from the protections that an umbrella insurance policy provides. If you don’t currently have umbrella insurance protection, consider contacting your insurance provider to determine if it’s worth adding. You’ll be glad you did when the time comes and you’re protected from unexpected damages.
Video Source: https://www.travelers.com/small-business-insurance/umbrella
