Guide to Umbrella Insurance
Even if you already have insurance for your car, boat and house, it does not mean your personal assets will be entirely safe from legal claims. Umbrella insurance is designed to fill in the gaps that fall outside the limits of usual insurance policies, as well as address some types of incidents that aren’t covered by normal policies. Think of this type of financial protection as a safety net that provides an extra added level of security against liability claims made against you.
Umbrella policies address a wide variety of financial claims, some of which are already partially covered by one’s normal policies, including injuries to others and property loss. In most cases, this kind of insurance is activated when you are at fault and therefore liable for damage caused to property or individuals. This policy can help compensate for costs that are the result of serious vehicular accidents for which you are at fault, as well as personal injuries to someone who, for instance, is visiting your home and injures him or herself.
How it Works
Aside from various incidents involving injuries, good umbrella insurance coverage can also protect your belongings and property. The destruction of a rare or expensive piece of property in your home, like an antique or a fine art, can be covered by this policy. Umbrella protection can even alleviate substantially the financial loss caused by, say, one’s children in a school environment or in other shared environments. An umbrella policy also will protect your assets ifd you find yourself being sued for libel, slander, malicious prosecution and more.
A personal umbrella policy is a great way to protect one’s self from extremely costly or unexpected financial claims. It is also a tool to safeguard an entire family’s assets from various claims and crises. Even if the limit on your auto or homeowners insurance policy seems like enough, that doesn’t mean it will protect you from the more extreme events that can (and often do) happen. An umbrella policy is the best way to give a family extraordinary financial security and peace of mind.