Regardless of how careful you are, some unfortunate things happen—a car accident or an accident on your property. These are some situations that may end up in a lawsuit, which can lead to significant financial loss. Therefore, it’s essential to protect yourself from any unforeseen events with an umbrella insurance policy.
What Is Umbrella Insurance Policy?
An umbrella policy will go above and beyond your other existing insurance policies, such as your homeowners and auto insurance. It will protect your existing personal and future assess against costly lawsuits.
With that, this policy has a high deductible because it is designed to be met by your other policies. It also covers legal expenses on top of your policy amount and it could even pay you if your appearances in court cause you financial loss because you’re unable to come to work.
Moreover, this policy can cover your dependents, which are likely your children. With that, should any of your children get into an accident, your umbrella insurance policy will protect him or her.
Keep in mind that this is not personal insurance, which means it won’t protect you from lawsuits related to a business you own. It also doesn’t cover any high-risk and unnecessary activities you get yourself into when using your vehicle.
Do You Need It?
Who needs this type of insurance policy? The truth is, almost anyone can benefit from it because accidents often result in high expenses, which can happen to anybody. With this coverage, it can prevent you from paying out of your pocket for another person’s medical or legal bills should you be found responsible.
How Is It Linked To Liability Insurance?
In some cases, umbrella insurance is referred to as “excess liability protection.” However, they are two different types of insurance because not all insurers offer excess liability coverage. A personal umbrella policy will provide greater liability coverage for situations that are covered by your underlying policy.
In A Nutshell
Even if you think you’re not “high-risk” of being sued, doesn’t mean there are zero risks. As mentioned, no matter how careful you are, you can still get into something you didn’t expect to be in; and such things are beyond our control. This is also why an umbrella insurance policy is referred to as “bad luck” insurance.
You owe it to yourself and your loved ones to be safe and protected when you can, and an umbrella policy can help you with that. Consider this one of the safest courses of action you can take. Keep in mind as your financial situation changes, you may need to add more coverage in the future.
It’s vital you speak with an insurance agent today to explore your options and how an umbrella policy can help you stay protected. There are a lot of insurers out there that can help you today, but you must choose a reputable one that will suit your needs and will protect you for the many years to come.
Protect yourself and your loved ones from unforeseen events here at Panorama Insurance Agency Inc. We provide umbrella insurance policies that will provide you with extra liability coverage to you beyond your basic policy’s protection. Contact us today.