What is Umbrella Insurance?
Umbrella insurance is typically very affordable, costing as little as $20 a month. This coverage provides liability coverage above and beyond your other policies, such as Homeowners, Auto, Boat, Rented Properties, etc. Think of it as lawsuit insurance. Liability issues are everywhere, and you never know what could cause someone to present you with a lawsuit.
What does Umbrella Insurance cover?
Most liability coverage found within your current insurance policies only covers bodily injury and property damage to others. Umbrella policies will extend those limits to not only provide an additional amount of coverage for bodily injury and property damage, but also to cover things that are not listed under regular liability allowances. Every policy is different, so what is considered a covered liability issue under one insurance policy may not be covered on another. Umbrella Insurance kicks in when these situations present themselves and/or you exceed the amount of liability coverage under your regular insurance policies.
Why should you purchase Umbrella Insurance?
You may not think you need an umbrella policy, but consider this: What happens to you and your family’s assets should someone be injured at your home and sue you? What if the legal costs of the lawsuit exceed the liability coverage defined by your homeowner’s policy? Who will pick up the tab if you are responsible for a multi-car accident and your liability costs exceed the limits on your car insurance by tens or hundreds of thousands of dollars? Although these situations may be few and far between, do you really want to take that chance?