Auto and homeowner’s insurance is necessary to protect you in the event of a car accident or an accident in your home. However, what happens if the amount you are liable for exceeds your insurance coverage? Umbrella insurance is a way to protect yourself from personal liability claims in these situations.
What is Umbrella Insurance?
Umbrella insurance is a type of insurance that protects you if you are responsible for a claim where the claim exceeds what your auto or homeowner’s insurance covers. It can also cover specific types of claims that your standard insurance may not cover. This makes sure your assets are not at risk in the event you are sued for more than your insurance covers. Umbrella insurance also offers an important level of flexibility. It can cover other members of your household, as well as covers you when you travel.
Why Buy Umbrella Insurance?
A good rule of thumb for deciding whether you need to invest in umbrella insurance is if your total assets are greater than the limits of your insurance. This is to ensure you cannot lose your assets in a lawsuit due to your insurance not covering the total amount you are liable for.
You don’t need to be at high risk of being sued to invest in umbrella insurance. You can find yourself in a situation in which you are sued in everyday life, whether it is a car accident or a dog bite.
Umbrella insurance can give you peace of mind that your assets are protected. However, if you are at higher risk of being sued, you should seriously consider umbrella insurance. You are at higher risk if you rent out property, employ staff in your household, own a trampoline or a pool, or anything else that puts you at a greater risk for personal liability. It is important to remember that umbrella insurance only protects you in the event you are being sued for someone else’s property damage or injuries, it does not protect against damage to your own property. It also does not cover your business activities.
If you’ve been in an accident or need help understanding your coverage please feel free to call Nurse Attorney Christine Smith at 603.647.7200.