Umbrella insurance is a type of liability coverage that can protect you from financial ruin if you are sued and lose. It provides additional protection beyond what your home and car insurance provides, such as injuries to other people or damage to their property. However, it’s important to know how umbrella insurance works before deciding if this coverage is right for you.
An umbrella insurance policy kicks in when the damages from a single incident exceed the limits of your other policies. For example, if you are sued for $1 million after an auto accident, and your home and car insurance only provide coverage up to $500,000 combined, your umbrella insurance policy would pay the remaining $500,000.
Umbrella insurance can also protect you in situations not covered by your other policies. For example, if you are accused of libel or slander, your umbrella insurance policy may cover legal expenses. However, note that most umbrella insurance policies do not cover intentional acts.
While it may seem unnecessary to have an additional policy, adding an umbrella insurance policy can be a wise financial move. Suppose you are sued for damages exceeding your other policies’ limits. In that case, you could face the prospect of losing your home or car while continuing to pay expensive premiums on your insurance policies. Umbrella insurance can prevent this from happening and protect you from financial ruin.
When choosing an umbrella insurance policy, it is important to know the policy’s limits and what is and is not covered. Be sure to read the fine print to know exactly what you are buying. Also, be sure to shop around for the best rates. You may be surprised at how affordable umbrella insurance can be.
If you are looking to add an umbrella insurance policy to your insurance portfolio, contact Coastal Premier Insurance Group in Boca Raton, FL, today. We would be happy to discuss your options and help you find the right coverage.