Learn about Umbrella Insurance
Should you already carry insurance on your car, boat and house, that certainly does not mean your personal assets are fully protected from legal claims. Umbrella insurance was created as an instrument to fill in the holes that are left after the limits of standard insurance policies are exhausted. It also addresses some kinds of incidents that aren’t covered by normal policies. Think of this type of policy as a safety net that provides an extra layer of protection against liability claims made against you.
Umbrella policies address a wide range of financial claims, some of which are already partially covered by one’s standard policy, including injuries to others and property loss. In most cases, this type of insurance is activated when you are at fault and therefore liable for damage caused to property or some other individual. This policy can help cover costs that are the result of serious vehicular accidents for which you are found to be at fault, as well as personal injuries to someone who, for example, is hurt while visiting your home.
How it Works
Aside from various incidents involving injuries, good umbrella insurance can also protect your investments in belongings and property. The destruction of a rare or costly item in your home, like an antique or a fine piece of art, can be protected by this policy. Umbrella coverage can even mitigate the financial loss caused by your kids at school or in any other shared environment. An umbrella policy also will protect your assets should you find yourself being sued for libel, slander, malicious prosecution and more.
A personal umbrella policy is a smart way to protect yourself from extremely expensive and/or unexpected financial claims. It is also a tool to safeguard your entire family’s assets from various claimants. Even if the limit on your auto or homeowner’s insurance policy seems enough, that doesn’t mean it will protect you from the more extreme incidents that can happen in life. An umbrella policy is a great way to give you and your loved ones that extra added layer of financial security, so you are prepared for whatever might happen down the proverbial road.