Umbrella Insurance Provides Additional Coverage
Umbrella insurance provides additional financial support when you need it most. It’s for when you’re found liable for an injury done to another person. The cost of damages might exceed what your traditional liability will cover. This is a risk that could ruin you financially. Umbrella insurance helps reduce this risk by paying the amount your liability does not.
Umbrella insurance doesn’t replace the need for auto, homeowner’s, or any other type of insurance. What it does is work with your existing liability coverage to provide additional coverage. It will take effect once your other liability policies have been exhausted. So if you’re responsible for $20,000 worth of injuries, but only have $15,000 in liability, umbrella coverage will cover the rest.
The policy might also cover situations in which you wouldn’t normally have coverage. For example, some policies cover things pertaining to libel or defamation or damage done to a rental unit.
Umbrella insurance is relatively inexpensive when compared to other policies. If you feel you’re at high-risk for facing a lawsuit, then you should consider this coverage. Also, if you feel your existing liability coverage isn’t enough, you also might benefit from this policy. With umbrella coverage, you won’t have to worry about going broke if you face a lawsuit or deal with some other liability issue.