Personal Umbrella Insurance

Umbrella Insurance to Protect Your Assets

Personal umbrella insurance is worth considering if you have several assets to protect. It’s basically extra liability coverage that serves as a safety net when your existing liability isn’t enough. Should your existing liability coverage fall short, your umbrella policy will come and save the day.

An umbrella policy isn’t a policy that you can purchase by itself. It works with liability coverage that you already have. If you feel the liability on your existing policies aren’t enough, then you can purchase extra via umbrella insurance.

Like most liability policies, umbrella coverage can be used in certain situations. When you’re responsible for bodily injury, property damage or have landlord liability, then umbrella insurance might contribute to your expenses. But incidents such as business losses, damage to your personal belongings, and legal assistance for criminal acts aren’t covered.

When purchasing umbrella coverage, you must consider the amount of your existing coverage. For example, you might have $20,000 of liability on your auto insurance. How much more liability coverage would you like to have? Whatever that amount, then that’s the amount you can purchase for your umbrella policy. You’ll still be responsible for amounts that exceed your coverage, but at least you’ll get help with some of the expenses.

Umbrella insurance can protect your assets and save you from bankruptcy. When you’re responsible for paying damages, you’re legally bound to pay the debt. If you don’t have the money, then you might have to sell assets. That could lead to bankruptcy and a financial disaster. Umbrella insurance can save you from this fate by making it easier to pay the debt.