As you shop around for insurance for your stuff, it’s easy to forget about insuring yourself!
Personal insurance is designed to protect you and your family from injury, damage, and claims. While some coverage may be provided in a vehicle or homeowners policy, this coverage doesn’t extend to all circumstances. As you plan your legacy and work to protect your assets and investments, it’s wise to explore other policies that offer more comprehensive protection.
Think of umbrella insurance as a literal umbrella. It covers you and protects you from anything the world drops on you.
Financially savvy people know that they need insurance, but they also know they shouldn’t pay for more than they need. After all, the more coverage you purchase, the more expensive it is. An umbrella policy has the advantage of providing both excess liability coverage and coverage for items not on a standard plan, but the policies are less expensive overall.
Further umbrella insurance policies are even more reasonably priced when they’re purchased along with the original insurance policy.
Here are a couple of umbrella insurance claim examples that illustrate how prudent it is to have this type of coverage:
– A driver makes an unsafe lane change on the freeway, causing a multiple vehicle accident. After all the claims are filed, it’s discovered that the damages are more than what the policyholder’s insurance covers. An umbrella policy can help make up the difference.
– You own a rental property, and your tenant sustains a serious injury that also affects her livelihood. Your rental property insurance doesn’t cover this particular type of injury. Further, there were substantial six-figure expenses associated with the tenant’s claim, but your umbrella policy likely will cover the cost of the damages.
If you have considerable assets worth protecting, then an umbrella insurance policy is likely a smart investment.