Buying insurance helps protect you and your family from risks that can come unexpectedly. Unfortunately, there are situations that can simply rain on your parade, but what better way to protect yourself than having personal umbrella insurance?
Personal umbrella insurance, also referred to as umbrella insurance, is a separate insurance policy designed to include additional liability coverage over and above another insurance policy like a home or auto policy. An umbrella insurance policy is only used when you’ve reached your liability limits on your main policies. In addition, it will provide protection for your assets against certain lawsuits and covers your legal expenses, while in preparation for your legal defense and from large and potentially overwhelming liability claims.
An example of when an umbrella insurance policy is needed is if you’ve been involved in a car accident that results in serious injuries to the other driver and they are unable to return to work. They’ve decided to sue you for $1.5 million for medical bills and lost wages, but your car insurance liability limit only covers $1 million. Since there is an additional $500,000.00, your umbrella policy will cover the remaining amount. Therefore, if you didn’t have an umbrella insurance policy, you would still need to find a way to pay the remaining $500,000.00, on top of paying for the legal expenses.