by admin

Share

Share

The Importance of Having Umbrella Insurance

Umbrella insurance is commonly referred to as excess liability insurance. Overall, it is the type of insurance that is in place to protect your finances and assets if someone is injured in certain situations and you are found liable. There are different situations in which you can be considered liable and your umbrella insurance coverage can protect you and your family.

What Does It Cover?

Generally speaking, there are certain things qualify for umbrella insurance coverage. When there is a sizable claim against you for personal injury suffered by another person, it can protect your assets and finances. Some situations that are covered include:

• Bodily injury
• Landlord liability
• Personal injury
• Property damage

At the same time, personal belongings, business losses, written or oral contracts and intentional criminal acts are not covered by this type of insurance.

Why Do You Need Umbrella Insurance?

Sadly, many people fail to include this coverage as part of their policies. However, it can help with a number of types of liability claims. If you have amassed many years of savings and investments, you will want to keep them protected by ensuring you have umbrella insurance. For example, if you are involved in a serious car accident that renders someone with severe injuries, and injury lawyers are able to effectively prove that you are liable, you may be responsible for compensating the victim with a significant settlement amount. This insurance can keep your money and assets protected.

Who Needs It?

Umbrella insurance is for anyone who has a good income, owns their own home and has good equity. If your net worth is at least $500,000, you should definitely invest in this type of policy.

No matter what, if you have it and get sued by someone for any of these reasons, you can breathe more easily. Your years of hard work and dedication will remain protected.