No one is perfect, which is why you probably already own a couple of insurance coverages to protect yourself, your loved ones, and your assets. But beyond the standard life insurance, homeowners/renter’s insurance, or auto insurance policy, you may have disregarded a vital and affordable type of insurance policy – the “Umbrella Insurance.”
This happens because the financial protection that umbrella insurance provides becomes effective only under certain, but often important, situations. In this article, we’ll take a look at what Umbrella insurance is and who needs it.
What Is Umbrella Insurance?
This is a sort of personal liability insurance policy. This insurance policy can be vital whenever you find yourself liable for a certain claim that exceeds what your auto or homeowner’s insurance policy will cover. In other words, umbrella insurance helps supplement other liability insurance policies most people already own. The plan is designed to kick in when your liability policy has been exhausted.
For instance, if you have a car, umbrella insurance will pick up where your auto liability insurance stops. Besides, umbrella insurance even provides coverage for certain liability claims those insurance policies may not cover, like false imprisonment, slander, and libel. The main objective of umbrella insurance is to protect you and your belongings from the financial fallout of certain unexpected events.
Who Needs Umbrella Insurance?
While this type of liability insurance policy is not required by law, most often, people will get one if they have high chances of being sued or have a lot of assets to protect. Umbrella insurance might be worth buying under these conditions:
You have huge assets. Let’s assume you have significant assets and you’re found responsible for an accident, which results in people getting injured. This could lead to thousands of dollars in damages and medical bills. Growing your assets is just as important as protecting them, especially when the costs of an umbrella insurance policy are quite affordable.
You own properties. You want a sufficient insurance policy to cover the cost of your property. Besides, the property is more liable to risk since a lot of things can go wrong — like a guest getting hurt at a party or your dog attacking a neighbor, and you end up getting sued. An umbrella insurance policy can help protect against these kinds of situations.
You own a business. There are lots of likely events where your company could cause damages to other people or businesses. It may be wise to purchase an umbrella policy in case a customer or disgruntled employee comes after you and your business.
You have a risky hobby. If you participate in sports activities where you can easily injure others, such as hunting, surfing, skiing, or mixed martial arts, you may want to purchase umbrella insurance. In the case that you accidentally injured someone and they sued you to cover medical bills, lost wages, and suffering, this policy would likely cover you.
Contact Redwood Agency Group
Want to learn more? Contact Redwood Agency Group today to find out how the right umbrella insurance policy can help protect you, your family, and your property.