Umbrella insurance, contrary to what you might think, is not getting protection for your shelter against rain. But it does give you additional protection on unexpected circumstances life throws at you. Here are some points you must know on umbrella policies, and why you should rush to get one now.
Umbrella insurance is an additional defense for your personal liability after exhausting your initial coverage in your primary policy. This type can simultaneously cover all your properties and vehicles, depending on the coverage you obtain. Take note though, this is secondary insurance, meaning you must have a primary policy before this type can take effect.
What can umbrella insurance protect you from? Basically, two things: lawsuits from personal injury or property damage; and, other legal costs involved once you get sued for said cases.
Why You Need It
You need an umbrella policy because lawsuits are so common nowadays, and they do not come cheap. Your general liability insurance can help, but it has its limits. Should you be on the defense side in court and lose, you have to shoulder the complainant's medical expenses, therapy or rehab, salaries, legal costs, representation costs, and financial responsibility costs. Do you think your current coverage would be enough for all of those expenses? Judge decisions are unpredictable, so it is better to have additional protection for your sake.
How Much It Costs
Umbrella policies are generally more affordable. In most cases, coverage of a million dollars can cost $100 to $150 a year. You can increase coverage as well if you think you are more at risk.
Who Must Get One
Anyone can lose a lawsuit, so if you have established assets, investments, and savings, you should definitely obtain a policy. If at present, you have no assets, you should still get one. Most courts can obligate you to pay using your future earnings. If you have promotions coming up, or plans for yourself, you should not miss having umbrella insurance.
Before You Go
Before finding your insurance agent, make sure to prepare a full picture of your entire assets and their insurance providers. List all your properties, your vehicles, as well as the limits on your current coverage. Research on the best insurance providers to make sure you are in good hands.
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.