Umbrella Coverage Extends your Protection
When you want to make certain that you will not be blindsided by liability issues that your existing homeowners and car insurance policies will not cover, you should invest in umbrella insurance coverage. Umbrella insurance goes into effect when there are “gray areas” that arise when liability issues present themselves but are not specifically stated as being covered under regular liability coverage.
Umbrella insurance also kicks in when you need to exceed the limit of liability coverage under your regular policy. If you have an umbrella insurance policy, it will take care of that coverage.
Do You Need It?
It’s true that you likely will have more claims through your auto and homeowners’ insurance policies than you would with an umbrella insurance policy. But it’s also true that when an umbrella policy kicks in, you’ve landed yourself in quite a serious predicament that could financially ruin you if you didn’t have umbrella coverage. For example:
- You are at fault in a devastating car crash with multiple victims who require extensive medical treatment,
- You are throwing a party at your house and an upstairs balcony collapses onto a group of people sitting underneath it, causing major injuries.
These examples and freak accidents like them probably won’t happen to you. But they do happen and they could happen to you. And that’s why it’s a good idea to plan for the “what ifs” by purchasing an umbrella insurance policy. Hopefully you will never need to file a claim on your umbrella insurance policy, but if ever you do, you’ll be glad it’s there.