The benefits of having a personal umbrella insurance policy.
Many consumers, even today, are not aware of the benefits provided by an umbrella policy. Some may not even know that such a policy exists. What many don’t realize is that this coverage is valuable for many homeowners. An umbrella policy covers you beyond car insurance and homeowners insurance for accidents and other financial troubles that could arise. It is designed to extend your current liability coverage so that you have more financial protection.
If you’re involved in an auto accident or someone is injured on your property, your auto or homeowners insurance will cover your liability. However, liability claims can exceed hundreds of thousands of dollars depending on the extent of the damage. If you exhaust your home or auto policy, you could be left on the hook to cover the remaining expenses. That’s why you need a personal umbrella policy. It kicks in when your auto and homeowners insurance policy are met. This means that your home, personal and retirement savings, college fund, future earnings, and other assets are protected.
In addition to having additional liability coverage, your personal umbrella insurance policy covers several other incidents. Below are just a few additional benefits:
- Personal injury coverage if someone files a libel, defamation of character, slander or related claim against you
- Worldwide coverage if you cause an accident while abroad
- Vacation rental liability for rental equipment such as scooters, boats, and jet skis
- Defense coverage associated with attorney fees and other related legal expenses
Believe it or not, an umbrella policy isn’t just for the wealthy. Actually, it’s recommended coverage for anyone. Lawsuits can be expensive, and it’s wise to secure protection to safeguard your assets.