What is Umbrella Insurance and Who Can Benefit from it?
Umbrella Insurance policies provide extra protection.
A rain umbrella protects you from getting wet, but doesn’t stop the raindrops from falling. Umbrella liability insurance is similar in that it cannot prevent accidents or mishaps, but can make those things less devastating financially.
Your primary insurance coverage, like your homeowners and auto policies, includes liability coverage up to a certain limit. Liability is your legal responsibility to pay for damage to a person or to a person’s property. An umbrella policy increases your liability coverage substantially.
Who can benefit from Umbrella Insurance?
· Anyone with assets to protect
· Everyone who drives a vehicle, including a car, motorcycle, boat or ATV
· Everyone who owns or rents a home, condo, or apartment
In our litigious society, we must protect our assets from lawsuits. The primary reason for carrying umbrella insurance is that you never know what you may be responsible for. Accidents happen, and when they do, you may be held legally responsible for resulting bodily injury and property damage as well as legal fees, all of which can quickly escalate to hundreds of thousands of dollars.
If you cause an accident, the legal system makes a judgment that, between you and the injured person, you should be the one to shoulder the financial repercussions. The person who suffered damage is then entitled to collect what is owed by claiming insurance proceeds. If the money provided by the insurance company is inadequate, a claim may be made on your income, assets and savings.
Adequate liability insurance protects you from these financial consequences. Pain and suffering, lost wages, medical bills and property damage are some of the items you may be sued for that are covered by umbrella liability insurance.
To get all the information you need about umbrella liability insurance, contact Frost Insurance Agency in the Trusted Choice network.
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