You certainly know the importance of insurance. They help you protect your assets and property. For most people, a home owner’s insurance, as well as an auto insurance, is a priority for their homes and vehicles respectively.
When it comes to insurance, you can always do with a bit more of liability coverage. It is because of this, that personal umbrella insurance exists.
Personal umbrella insurance acts as an extra liability coverage for all your other existing insurance coverages. It is designed to come into play once the limits on your underlying insurance coverage are reached. Alternatively, a personal umbrella insurance can be used as a cover for certain liabilities that may not be covered in your existing policies. These include false arrest, slander and liability coverage on your rental units.
What is covered in a personal umbrella insurance?
A personal umbrella insurance will usually cover more or less of what a homeowner’s insurance, auto insurance or boat insurance will cover. However, the great thing about a personal umbrella insurance is that it will usually go beyond the limits on your other insurance coverages.
Say, for example, your vehicle was involved in an accident and the cost to repair comes to $500,000. If your auto insurance only covers $250,000 you may find yourself struggling to pay the rest of the money. This can take a huge toll on your finances. With a personal umbrella insurance, however, you needn’t worry about that. The coverage will pay for the remaining balance.
Can I simply get personal umbrella insurance?
Unfortunately, the answer is no! Unlike other insurance coverage that does not require you to do much, you have to qualify for a personal umbrella insurance before you get one. For you to qualify for a personal umbrella insurance, you must have and maintain certain minimum liability limits on your homeowner’s insurance, auto insurance and if applicable, boat insurance coverage. These limits may differ depending on the carrier’s risk.
So, do you need personal umbrella insurance?
Most people will feel that they do not need a personal umbrella insurance. However, it is important to bear in mind that anyone and everyone is susceptible to accidents. Of course, most people will argue that they already have existing insurance coverage. But, given that there it is so easy to file a lawsuit nowadays, are you sure that your existing policy will be able to cover all liabilities? In the event you have an accident that is totally your fault, will it be possible for your existing coverage to cover all costs without you having to pay for some yourself?
Because you cannot tell how much you will have to pay, it is better to have a personal umbrella insurance. This will ensure that you have further protected your assets and property. If you are ready to get your personal umbrella insurance, get in touch with us to check out your options!