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Is Getting a Personal Umbrella Insurance Worth It?

6 Jul by 5280 Insurance

Have you ever felt that your home or auto insurance is still not enough to protect you in case of an accident? If you want to make sure that your assets are sufficiently covered, think about looking into a personal umbrella liability insurance policy. Additional coverage in the form of umbrella insurance may just be exactly what you need to get that peace of mind, and help protect everything you’ve worked so hard to achieve! Let’s look at what umbrella insurance is and how you can benefit from it.

What Is Personal Umbrella Liability Insurance?

Personal umbrella liability insurance, also known as an umbrella policy, is a form of additional liability insurance, which covers you in the case that you need to be held responsible for a lawsuit due to you being involved in an incident. So if you are going to buy one of these policies, you need to first understand the importance of liability insurance vs. umbrella insurance.

Liability Insurance vs. Umbrella Insurance

The first type of coverage you need to understand is the liability coverage, which will cover you in the case you are held responsible for causing damage to another party in a car accident, slip and fall accident, etc.

The second type of coverage you need to understand is umbrella liability insurance, which is additional coverage that would cover you in the case that you are unable to cover your liability insurance due to the amount of damages and/or settlement amount rising above what your liability insurance policy can cover.

A perfect example of how this would work would be a driver involved in a car accident who has liability insurance coverage. Suppose the driver is found to be at fault for the accident. In that case, their liability coverage will cover the damages and other costs, such as the medical bills of the injured parties or payouts to those who may have lost income due to the accident. If the person involved in the accident did not have enough coverage to pay for the expenses or the expenses became surprisingly expensive and did not even meet the minimum liability coverage amount of the driver in question, the driver would then turn to their personal umbrella liability insurance policy.

Who Needs a Personal Umbrella Liability Insurance Policy?

There are so many different types of situations in which umbrella insurance could be helpful. It could be a policy with a high minimum liability coverage or a policy you purchase with an extensive coverage limit. Either way, it is beneficial for someone who has high assets to protect, such as a small business owner, doctors, lawyers, and more.

What Does Umbrella Liability Insurance Cover?

You need to understand that an umbrella liability insurance won’t cover all of your assets but will typically cover your most valuable assets. You will still want to have your home and auto insurance on hand to cover your home and vehicle, along with liability coverage for those.

Umbrella liability insurance will typically cover things like your business, your home, personal property, investments, and more. It is truly a good idea to have this type of coverage so that you will be able to protect your assets in the case of an accident or lawsuit.

What Umbrella Insurance Won’t Cover

Personal umbrella liability insurance won’t cover everything, so you will want to make sure that you are aware of what it does not cover. When you are purchasing this type of policy, you will want to make sure that you know what is covered and what is not covered under it.

There are some things your umbrella insurance policy won’t cover, like injuries you cause to yourself or damage to your own property. Other things your policy probably won’t cover include anything you do on purpose, any liability you create while you’re working, and any liability that comes from a legally binding contract.

Conclusion

When you want to make sure that you are able to protect your assets in the case that you need to be held responsible for an accident or lawsuit, you can easily do so with a personal umbrella liability insurance policy. If you are looking for more information on this policy, contact an insurance agent to help you understand the terms and coverage and work through any questions you may have.

Don’t let an accident or lawsuit ruin your hard work or cause you to fall into debt just to pay an enormous bill. Invest in an umbrella liability insurance policy today, and make sure you are prepared! 5280 Insurance is here to help you find the right policy for your needs by working with some of the top insurance carriers in the industry. We’ll find you the best insurer at a great price. Contact our team today to get an umbrella liability insurance quote.

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