Why is umbrella insurance something you should seriously consider?
Umbrella insurance is usually an essential extra type of liability insurance which you can use to insure your automobiles, home, and business. Umbrella coverage will cater for the extra liability claims that may arise in case you incur a liability claim that exceeds your normal liability policy.
Without umbrella coverage, you risk losing everything that you have worked hard to gain including your assets and your retirement savings. Examples of specific circumstances covered by umbrella coverage include lawsuits, property damage, and personal injury. Below are three incredible facts about umbrella insurance cover that you need to know.
Umbrella Insurance Protects You Against Liability Risks
Risks will always be around you no matter the kind of life you’re living. Your dog can bite your guest, or your neighbor’s child can drown in your swimming pool. If such occurrences happen, the liability claim of the victim can exceed your standard policy’s limit calling for extra coverage. This is where the umbrella insurance comes in and protects you against such catastrophic (and unforeseen) scenarios.
Without Umbrella Insurance, You Can Lose Everything
Think about this scenario; you get involved in a car accident, and the other driver is severely injured which results in a lawsuit. The injured driver wins the case, and the court awards a compensation totaling to about $600,000. Unfortunately, your auto insurance policy can only pay a maximum limit of $400,000. Where do you get the extra $200,000 if you don’t have an umbrella cover? Some people may have that money, but most of us don’t. It might end up that you have to sell some of your valuable assets to raise the extra amount of money.
It is Cheap (even if you think it isn’t)
Most insurance companies charge an average amount of $250 a year for an umbrella policy which covers millions of dollars in excess liability each year. As such, you are adequately covered at a low cost. In the long run, umbrella insurance is definitely the cheaper option. After all, you never plan for a tragedy.
To find out about our umbrella policy, give us a call today!