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Umbrella Insurance

Be Informed on Umbrella Insurance

Good umbrella insurance coverage provides extra liability protection that exceeds the policy limits of a traditional car or homeowners’ insurance plan. If one’s current liability coverage isn’t enough to fully pay for someone’s damages for he or she is at fault, whether it is from a motor vehicle accident or a visitor mishap in the home, umbrella coverage helps to avoid financial disaster.

Regardless of the common wisdom of who this type of coverage benefits, one does not have to be wealthy to reap the benefits of umbrella insurance. Simply owning your own home and being the breadwinner is enough to motivate one to purchase this extra added protection. The reasons for carrying this coverage are many, anything from sleeping while at the wheel and causing a crash, to dealing with that neighbor who falls off your deck and breaks her ankle. The fact is, without enough coverage, everything you have worked over the years to build could disappear. Normally, the usual car or home insurance will cover the initial $300,000, but that sometimes is not enough. Being personally liable for any amount that goes beyond the standard limits is why this type of coverage can mean the difference between financial stability and bankruptcy.

Good umbrella insurance can safeguard one from the perils that which the usual homeowner or auto insurance plans will not be sufficient. When it comes to non-property related liability, umbrella policies can be the proverbial magic bullet. If a policy holder finds his or herself sued for defamation or Slander, false arrest or imprisonment, malicious prosecution, instigation of mental anguish and torment, or wrongful prosecution, then the extended protection afforded by this coverage can mitigate any financial difficulties and struggles.

If you sued one can often incur overwhelming legal expenses. Despite prevailing in a lawsuit, these costs can be no small sum. Having an umbrella policy, you can enjoy the peace of mind in knowing that you can afford a legal team to fight for you, while the insurer can also pay out to you for such things as court costs and, again, the lawyers. If you’re found liable for a substantial sum, your umbrella plan will protect you by helping with payments that exceed your standard coverage. (Limited to the level of your umbrella coverage.)
Keep in mind that it only takes just one instant, whether its due to one’s eyes being off the road and hitting another vehicle or some kind of major lawsuit taken out against you, to soon find out how important umbrella coverage is in protecting you and your family.