While all the rain we’ve had lately requires its own protection, today we’re talking about a different type of umbrella (insurance). Most people understand the basics of homeowners’, auto, and even renters’ insurance. But when it comes to umbrella coverage, they draw a blank! Still, this additional safeguard can make a significant difference if you find yourself in a legal entanglement. Including any of the following:
When You Have a Higher Risk of Being Sued
Honestly, you may be surprised by what people will sue others over these days. It’s not just a matter of owning property and someone else accidentally getting injured on it. (Though umbrella insurance would definitely cover you in that situation.) You could be putting yourself at risk of a lawsuit simply by volunteering with a nonprofit organization or serving on the board. Being involved with organized sports, either as a coach or a player, could create a need for umbrella insurance, too. Not to mention, travelling internationally, renting out property/equipment, or even posting reviews online. Essentially, if you have assets that could make you a target for legal action, you may want to consider adding an umbrella to your current coverage.
When You Already Have Homeowners’ Insurance
The one downside to umbrella insurance is that you need to already have certain protection(s) in place. This includes common types of property policies, such as homeowners’ insurance, renters’ insurance, and/or auto insurance. You may also need to maintain certain minimums in order to qualify for additional umbrella coverage—but it makes sense when you think about it. After all, an umbrella policy is meant to extend your liability protection. That’s why it’s also known as excess liability insurance. In order for it to fill the gaps and provide a wider safety net for your financial security, you have to have something to start with!
When You Have A Lot of Assets
In terms of cash, stocks, and even property! The unfortunate truth is that the more you have, the more of a target for liability issues you become. Especially if you have risky hobbies (like boating, motorcycle riding, and more) or controversial equipment (including pools and trampolines), it’s a good idea to purchase umbrella insurance. Although it’s a relatively inexpensive add-on, it provides an additional cushion up to a million dollars or more! Not sure how this works?
Basically, it picks up when your regularly property insurance falls short. For example, if you’re in a car accident and you’re sued for $500,000—then you lose. Well, your auto insurance might have a maximum of $250,000. Without umbrella insurance, you could be required to pay that additional $250,000 out of pocket. But, with this safeguard in place, you won’t have to cover the difference on your own. It even works internationally—unlike most traditional types of insurance—for worldwide protection.
For a free quote on a personalized umbrella policy, talk with our team today! At Freedom Insurance Agency, we help each client create a custom plan that includes everything from homeowners’ insurance to auto insurance. Plus, overarching umbrella insurance to provide financial security. Declare your freedom from the high cost of insurance without compromising your protection.