Should you already carry the car, boat and/or house insurance, that certainly will not mean your personal assets are safe from legal claims. Umbrella insurance was created as a method for filling in the gaps that lie beyond the limits of standard insurance policies, as well as address many types of incidents that aren’t covered by standard policies. Think of this type of financial protection as a safety net that provides an extra layer of protection against liability claims made against you.
Umbrella policies work to address a variety of financial claims, some of which are already partially covered by standard policies, including injuries to others and property loss. In most cases, this kind of insurance is activated when you are at fault and therefore liable for damage caused to something or some other person. This policy can help cover costs that are the consequence of serious vehicular accidents for which you are found to be at fault, as well as personal injuries to someone who, for example, is visiting your home and slips and hurts themselves.
In addition to the various incidents involving injuries, good umbrella insurance can also protect your property investments and personal belongings. The destruction of a rare or costly item in your home, like an antique or a fine piece of art, can be protected by this policy. Umbrella coverage can even mitigate the financial loss caused by your kids at school or in a myriad of other shared environments. An umbrella policy can protect your assets if you find yourself being sued for libel, slander, malicious prosecution and more.
A personal umbrella policy is a sensible way to protect yourself from extremely costly or unexpected financial claims and can be a great tool to safeguard your entire family’s assets from financial threats. Even if the limit on your auto or homeowners’ insurance policy seems like it’s enough, that doesn’t mean you are protected from the more extreme incidents that can happen over time. An umbrella policy is the best way to give you and your family that extra added layer of financial security, so you are prepared for whatever might happen down the road.