People around the world are running into a period of uncertainty due to the impact of COVID-19. Consequently, there is a growing interest in investing in insurance to protect themselves and their properties in time of contingencies.
However, your auto insurance, homeowners’ insurance, or other insurances are not perfect. Your insurance policies can only cover a certain amount, and the policy no longer covers any amount beyond that.
Another Layer of Protection
An umbrella is crafted to protect you from the rain or the sun when your clothing can no longer handle harsh weather elements. Equally, umbrella insurance provides you another layer of protection beyond your other insurance policies' current limit. It is extra protection that can cover property damage, lawsuits, injuries, and personal liability circumstances.
For example, you run into another vehicle and injured bystanders. The car needs repairs amounting to $300,000 while the treatment for the driver's injuries and the bystanders cost about $600,000. In total, you owe a total of $900,000 for the cost of repair and treatments.
If your car insurance can only cover $500,000, the remaining $400,000 will come from your personal money. But if you have umbrella insurance, the remaining amount can be covered by it and any lawsuit costs.
Other advantages of umbrella insurance:
Disadvantages of Umbrella Insurance
Meanwhile, there are two disadvantages in obtaining umbrella insurance. First, you must be a policyholder of car or property insurance and meet the required minimum amount of liability coverage. Second, since it is another insurance, it will increase the premium that you must pay.
The advantages of getting umbrella insurance outweigh its disadvantages. It will increase the insurance cost you must pay, but any added protection to yourself and our property is worth every penny in these challenging times.
At Mauser & Tobin Co., Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (516) 747-0171. You can also request a free quote by CLICKING HERE.