What is a Personal Umbrella Policy?
What Do You Need to Know About Personal Umbrella Insurance?
The family is a priority and protecting them along with your assets is the reason insurance exists. Umbrella insurance is not a standalone type of insurance policy. It is a secondary policy, which is why it is also known as personal excess liability insurance.
Umbrella insurance covers your personal liability and sits on top of your primary insurance policy, giving added liability protection, in case of lawsuits and claims against you. If your base insurance policy —homeowners or auto insurance— is not enough to fully cover liability expenses in these situations, that’s when your personal umbrella insurance coverage kicks in.
Let’s illustrate this better with an example. Say, you’re involved in a car accident where another person is injured. What would happen if this person’s medical bills are higher than your auto insurance policy’s liability coverage? Well, if you have umbrella insurance, it will expand the limits of your liability coverage and can help you cover those additional costs. If you don’t, and you face a lawsuit, your assets could be at stake.
How Can You Be Sure You Need Personal Umbrella Insurance?
These days, we see lawsuits left and right. A suit can represent a high risk for you, your family and your assets. You may think this will not happen to you, and hopefully, it won’t, but accidents do happen, and it’s in those situations that umbrella insurance can give you peace of mind.
If you’re interested in having an extra layer of liability protection to keep your home, savings and even future earnings safe, to minimize a potential impact on your financial stability, having umbrella insurance is an excellent way to do it, without spending too much.
The cost of personal umbrella insurance will vary depending on how much liability coverage you decide to purchase. Your investment will be small compared to the value of the coverage you can get.
To better understand the benefits of umbrella insurance, talk to your independent insurance agent at AAI Central. We’re here to answer all your questions and help you protect your interests. Give us a call today!