While you are likely familiar with the importance of traditional insurance such as auto and homeowners, you may not be aware of the benefits of umbrella insurance. Umbrella insurance is a form of supplemental coverage that can assist you during emergencies. Here is an in-depth look at how umbrella insurance may be an asset for your situation.
● Umbrella Insurance What Is It and What Does It Cover
Umbrella insurance is a safety net. Your insurance policies have a limit to how much money the company will cover when you file a claim. During serious cases, the total amount of the damages may exceed your coverage limits. In this scenario, you will be left having to cover the difference out of your own pocket. If you have umbrella insurance, the policy will kick in and prevent you from having to pay for the differences up to the coverage amount provided by your umbrella insurance policy.
Umbrella Insurance is essential if you have a lot of assets. Without umbrella insurance, your real estate property and other investments may be at risk during a lawsuit. You should have more liability insurance than your assets. Umbrella insurance is also beneficial if you have dangerous equipment on your property or a pet that may bite someone.
● Umbrella Insurance: Is It Right for Me?
If you are the parent of a teenage driver, adding umbrella insurance is something that you should strongly consider. Teen drivers are considered high risk because of their relative inexperience driving a car. As a result, the likelihood of your teen being involved in a collision is relatively high. Adding umbrella insurance to your auto liability policy helps protect your assets in the event that your teen driver is ruled to be at fault for an accident. Umbrella insurance also allows you to receive extra coverage at a lower cost than if you were to simply raise the limits on your auto insurance.
If you enjoy having guests over to your home regularly or throwing parties, consider adding umbrella insurance to your traditional homeowner’s insurance. Umbrella insurance protects you if one of your guests damages someone’s property. You could be partially liable for the damages through indirect liability. This is especially true in a situation wherein you choose to serve alcohol while you host your guests. If they are involved in a collision on the way home, you will be held partially responsible.
Accidents at Home
Remember that accidents can happen at any time. The person delivering your mail can accidentally slip and fall. Perhaps severe weather causes a tree in your yard to fall over and damage your neighbor’s property. These are all potentially serious cases where you will be held liable. Umbrella insurance adds another layer of coverage to protect you as you deal with the incident.
If you are working as an independent contractor, consider adding liability coverage to protect you before starting the project. Umbrella insurance can help protect you if you are accused of negligence or malicious intent. It can also help you fight the charges and uphold your reputation.
Umbrella insurance is an asset that can help you during serious liability disputes. Do you have any additional questions about business insurance? Contact the experts at First Insurance Solutions. We are ready to help you with all your coverage needs.