What is umbrella insurance? Umbrella insurance provides you extra coverage beyond the limits of your typical primary insurance policies, like auto, homeowners, or renters insurance. It acts as a safety net, extending protection against lawsuits that might exceed your existing policy limits. You can find umbrella insurance options at most personal insurance companies.
Here is how it works:
- Extra Coverage: If you’re involved in a situation where you’re held liable for damages that exceed your primary insurance policy’s limit, an umbrella policy can cover the excess amount. For example, if your car insurance covers $200,000 for bodily injury but a lawsuit awards $400,000 in damages, your umbrella policy can cover the additional $200,000.
- Broader Protection: Umbrella insurance often provides coverage for certain types of claims that might not be included in your typical primary policies, like libel, slander, or certain lawsuits that involve personal or professional liability.
- Affordable: Umbrella insurance is generally quite affordable. It provides a significant amount of additional coverage at a relatively low cost, depending on your insurance provider, for everything you own.
When Should You Get Umbrella Insurance?
You should get umbrella insurance when:
- Your net worth exceeds $500,000
- Ex: This is based off what you own minus what you owe.
- You are at high risk of being sued
- Ex: You own rental properties, drive often, host social events, etc.
- You engage in risky activities
- Ex: You engage in dangerous sports, boating, have a pool, etc.
- People know you have valuable assets
- When you are well-known and it’s obvious you have money, you are more prone to lawsuits.
- You want peace of mind
- You can sleep peacefully knowing you are covered.
Umbrella insurance is designed to give extra security and financial protection, making it a useful addition if you want to make sure that you’re well-covered against major liability risks.
WELCOME TO GIRL INVESTMENT GROUP 