What is Umbrella Insurance?
Umbrella insurance is an additional amount of liability insurance which can be purchased along with your basic policy protect you from claims and situations that go beyond what your regular policy would cover. Umbrella insurance policies are available for homeowners, boat, auto and commercial insurance. Umbrella insurance is important because it offers extra protection in the case of unforeseen circumstances. As an example- if you are in a major car accident and are found to be the at-fault driver, with liability coverage of $50,00 but medical and legal fees that amount to $80,000, you will be liable for the balance. If you don’t have the extra insurance to cover that additional amount and you are unable to pay, you are at risk of losing your license until you can pay off that debt. Umbrella insurance grants the extra protection that will cover bodily injuries, death, damages, lawsuits (there are limitations, it is based on the policy) and other situations that are not addressed in basic insurance policies.
Why Do I need Umbrella Insurance?
You may think to yourself, "I don’t need all that extra insurance", but the fact is that you do. Unfortunately, many insurance policy holders don’t realize how essential having extra protection is until they find themselves in a position that they hadn’t thought of. It can be as simple as a bodily injury liability claim based on having some friends over for dinner, one slips and falls in the kitchen, claims to be ok but then you find you’re being sued over some sort of injury that they sustained. Umbrella insurance often covers lawsuits that go above and beyond basic damages suits, including mental pain and suffering. It’s wise to be proactive and invest in a policy that offers guaranteed protection against circumstances beyond your control.
The friendly agents at Alliance Insurance Services can help you find the umbrella coverage you need today.