Umbrella insurance gives you extra liability coverage beyond what your regular insurance policies (like homeowners or auto insurance) offer. It’s like an added layer of protection for your assets and future earnings in case of big claims and lawsuits.
Why You Might Need It
Umbrella insurance could be a good idea if you have significant assets, engage in activities with higher liability risks, or are a professional or business owner who might face a higher risk of being sued.
How Umbrella Insurance Works
If you have auto insurance with a liability limit of $300,000 and are found at fault in an accident resulting in $500,000 in damages, your auto insurance would pay the first $300,000. Without umbrella insurance, you’d be responsible for the remaining $200,000 out-of-pocket. But with a $1 million umbrella policy, the remaining $200,000 would be covered, saving you a significant financial loss.
Getting Umbrella Insurance
When looking into umbrella insurance, make sure to assess your risks, check underlying policy requirements, compare quotes from different insurers, and understand the terms of the policy before making a decision.
Conclusion
Umbrella insurance is a great way to protect yourself and your family from unexpected, significant liabilities that could impact your financial stability. It provides additional coverage and peace of mind, so you can breathe easier knowing you’re well-protected.
Larrybohboh provides updates on everything you anticipate. Stay tuned for an episode on the topic; Is bundling insurance good or bad? Have questions about Umbrella Insurance? Ask in the comments for more details.