Insurance is a must-have when it comes to protecting yourself and your assets. While most people are familiar with standard policies like auto, home, and health insurance, umbrella insurance is another type of coverage that needs to be addressed. It is a form of liability insurance that provides additional coverage beyond what is provided by your primary policies. It's a safety net that can protect you and your assets from unforeseen accidents and lawsuits. In this blog, we'll explore everything you need about umbrella insurance, including what it is, how it works, and whether or not you need it.
Umbrella insurance is one liability insurance that provides coverage above and beyond the limits of your primary insurance policies, such as homeowners or auto insurance. It is designed to protect you from major claims and lawsuits that could exceed the limits of your existing insurance policies.
If you are held responsible for an accident or incident that results in bodily injury or property damage to someone else, your primary insurance policies will typically cover the costs up to their limits. However, if the damages or legal fees exceed your policy limits, an umbrella policy can help cover the remaining costs up to the policy's limit.
Whether or not you need umbrella insurance depends on your circumstances. If you have significant assets that could be at risk in the event of a lawsuit or if you engage in activities that increase your liability risk, such as owning a pool or driving frequently, umbrella insurance could be a wise investment.
The cost of an umbrella policy varies depending on several factors, such as your location, assets, and risk profile. Generally, umbrella policies are relatively affordable, starting at around $200 per year for $1 million in coverage.
Umbrella insurance does not cover everything. For example, it typically does not cover intentional acts or criminal behavior. Additionally, some policies may have exclusions for specific incidents, such as those related to business activities.
Umbrella insurance can provide peace of mind and protection against potential financial devastation in the event of a lawsuit. While it is not a requirement for everyone, it can be a good idea for those with significant assets or high liability risks.
Umbrella insurance is generally affordable, with policies starting at around $200 per year. However, the cost can vary depending on your circumstances and the coverage you need.
If you want to learn about umbrella insurance and how it could benefit you, contact us at J&A Insurance. Our experienced team of insurance professionals can help you find the right policy to meet your needs and budget.