You’ve worked extremely hard to get where you are. Now you have some level of success, and you need to protect it the right way.
At any stage in your life, a large insurance claim can lead to loss of the financial success and control you’ve created and set you back several years.
Most people never expect to encounter a loss that exceeds the limits of the coverage they have. But unfortunately, in today’s litigious world, it’s a reality we face.
Of course, you probably already know, one of the best ways to protect yourself is with insurance policies. But the challenge is to understand which will cover all your costs and which won’t.
One of the best ways to increase your financial peace of mind is to look at a personal umbrella insurance policy. For a small fee (typically $200-$350 per year), you can gain extra coverage for up to $1Million or more with personal umbrella insurance.
Personal umbrella insurance is a catch-all type of insurance covering the unexpected extra costs that can accrue if someone claims against you.
What is a Personal Umbrella Insurance policy and How It Works?
Personal umbrella insurance is a form of insurance coverage that supplements other insurance policies, such as automobile or mortgage insurance, by providing additional financial protection.
Essentially, a Personal Umbrella Insurance Policy goes above and beyond basic business liability insurance limits. Umbrella insurance can offer up to $10 million of additional funds to manage unexpected situations or extra costs.
Umbrella insurance is a type of personal liability insurance covering claims above the regular homeowners, auto, or watercraft policy coverage. Here are some of the key features of umbrella insurance:
- Personal umbrella insurance covers not just the policyholder but also other members of their family or household.
- Umbrella insurance coverage covers injury to others or damage to their possessions; however, it doesn’t protect the policyholder’s property.
- Umbrella insurance is relatively low-cost when compared to other types of insurance.
- When the existing liability limits, such as those from a mortgage or car insurance policy, have been met, personal umbrella insurance kicks in.
Personal Umbrella Insurance offers Peace of Mind
Almost anyone can benefit from personal umbrella insurance. This is because high-cost mishaps can happen to anyone. If you’re deemed responsible, an umbrella insurance policy can protect you from having to pay for another person’s medical, property, or other financial expenses.
For example, your standard auto insurance policy will not protect against an accident that causes multiple passengers and drivers to be injured.
When your insurance coverage comes up short and is ineffective, an umbrella insurance policy can save you a lot of time, aggravation, and of course, financial loss. When your standard insurance coverage has been drained, a low-cost umbrella insurance policy.
The good news is that umbrella insurance policies are typically low-cost. The reason for this is because they cannot be claimed unless your regular coverage has been exceeded.
What is Covered Under An Umbrella Insurance Policy?
Umbrella insurance provides coverage above and beyond the limits of other insurance plans, as well as for allegations that liability policies may not protect.
Coverage is typically provided by umbrella insurance for:
- Accidents or injuries
- Theft of property
- Several lawsuits
- Situations involving personal liability
An umbrella insurance policy can also cover the cost of physical damages (and medical expenses) to another person. Some examples you may not have considered are:
- You are at fault in a severe car accident
- People harmed by your pets
- A visitor to your home falls ill or is injured
- Children injured on your property
Damage or injury of another person’s real property is protected by property damage liability. Harm to automobiles and other assets resulting from an auto accident in which you are at fault.
If you have built a solid financial base, it is highly recommended you contact a legal or financial advisor or insurance agent to understand the full benefits of an umbrella insurance policy.
An umbrella policy may provide the extra insurance you need to prevent having to cover the outstanding amount on your own. This additional coverage could shield your savings account, house, and other valuables.
Help Secure Your Financial Future
For a low cost, the extra liability coverage offered by umbrella insurance is well worth considering. The policy covers you (along with your family and other household members) against major claims or litigation that are not protected by your other insurance plans, such as homeowners or car insurance.
Paying a little extra for that peace of mind is worth it. If you have any issues with accidents, lawsuits, or unplanned liabilities, the umbrella insurance policy will be there to back you up.