Many of us think of having insurance in very simplistic terms such as if we have health and auto insurance we are hardcore adulting; #grownupgoals. However, the younger generation is less inclined to think of the many different insurance policies available such as life insurance, homeowner’s insurance, renter’s insurance etc. After all, how many policies does one need? Well it turns out, although there are probably unnecessary policies out there (volcano insurance in Montana anyone), there are some which are essential to keep you covered in case of an accident.
Sometimes automobile accidents are extremely tragic and result in a party being severely disabled, losing wages, and requiring long-term live in care. Also, we often see motor vehicle collisions involve multiple persons. Are you aware of what your policy limits are? If you are an at fault party and the car crash results in litigation, you could very well be facing a multi-million-dollar judgment when your policy only provides a few hundred thousand dollars’ worth of coverage. So, who pays that remaining amount of money? You do. Because of one set events, your assets, your life savings, these could all be up for grabs in a lawsuit. Is there any way to protect yourself in case this might occur?
Indeed, there is! Umbrella insurance is an affordable option that gives you additional liability protection. It provides coverage in addition to the standard limits of your home insurance policy, auto insurance policy, etc. The term “umbrella” alludes to the way in which the policy works, essentially it protects your assets more broadly than your primary insurance coverage allows, and covers the liability claims from all policies which fall beneath its protection such as your home or automobile insurance policies.
These policies are relatively inexpensive compared to the potential consequences of going without and usually are purchased in million dollar increments of one to five million dollars (or more) and also costs less than your primary insurance policies do. This is because the coverage is only triggered if and when the underlying policies have been exhausted. Additionally, umbrella policies typically provide broader coverage than your primary insurance might. Claims for false arrest, defamation, or invasion of privacy will often not be covered by your primary insurance provider, but these sorts of claims often will fall under the purview of your umbrella insurance policy.
The long and short of it is when it comes to insurance, it is better to be safe than sorry, and if you can afford the slight addition to expenses each month, umbrella insurance is a smart purchase. Have you been involved in an accident recently? Were you injured and have been unable to return to work? Is the magic eight ball of life being shaken and returning an “outlook not so good” answer to you? Contact our office today for a free consultation.