Benefits of Umbrella Insurance

Benefits of Umbrella Insurance

July 31, 2020 Home Insurance, Insurance 101, Protecting Investments

You want to make sure you and your family stay protected from unexpected accidents, which is why you have home, life and auto insurance. But does your existing coverage protect you if you’re held liable in a claim? If it doesn’t, you might be looking at taking a serious financial hit. A personal umbrella policy, or umbrella insurance, is designed to protect you from serious liability claims and judgements that can leave you footing a pretty large bill. That’s why investing in umbrella insurance now can potentially save you big bucks down the road.

What Is Umbrella Insurance?

Umbrella insurance begins working when the underlying liability limits of your existing insurance policies have been reached. Oftentimes it’s used to protect policyholders held liable for personal and bodily injury, property damage or landlord liability. However, it does not cover damages to your personal property, business losses, or any liability assumed under contract.

Benefits of Umbrella Insurance

Because it helps protect against the high costs that result from accidents, umbrella insurance benefits almost everyone. Being held liable for personal injuries or property damage can lead to steep out-of-pocket costs, but with a personal umbrella policy you don’t have to worry about footing the cost of medical or legal expenses. Additionally, umbrella policies can also cover family members as well, which means your spouse and children are also protected.

How Does Umbrella Insurance Work?

Let’s say someone slips and falls in your home resulting in a serious injury. Your homeowner’s insurance will cover you up to the policy limit. But if their medical bills, missed work time, and even pain and suffering exceed your regular limit, you’re left paying the difference out of pocket.

Umbrella insurance helps cover additional costs that most standard policies don’t. And because covering medical and personal injury costs can be expensive, most umbrella policies come in million dollar increments ranging from $1 million to $5 million. With a personal umbrella policy you can protect your home, family and bank account in the unfortunate event of a sudden accident.

Umbrella Insurance vs. Excess Liability Insurance

Even if you have excess liability coverage on an existing policy, adding umbrella insurance can help give better protection. While both excess liability coverage and umbrella policies help if you’re found responsible for a visitor’s injuries in your home, umbrella insurance provides greater coverage, even helping cover the costs of a slander or libel judgement against you.

If you’re looking to enjoy the added protection of a personal umbrella policy, our agents are ready to help you find the one that’s right for you. As an independent insurance agency, we represent 16 well-known insurance brands, which means we have more options available to find the best policy. Contact us today for a free consultation and let’s talk. For more tips and our latest updates, visit us on Facebook, Twitter or LinkedIn!