As you’re learning more and more about the basics of adulthood, you’ve probably heard of umbrella policies. Now, you may be wondering what an umbrella policy is and if you would ever need one in your lifetime. So in this article, we will be talking about what an umbrella policy is, and more importantly, who needs to get it:
What is Umbrella Insurance?
An umbrella policy protects you if you are sued for an incident that happened in your house, your car, or because of something that you caused. For example, if you are biking down a steep street and accidentally hit another biker or a passerby, they may sue you for medical expenses if you happen to cause them serious injury. Or if a repairman comes into your home and falls due to your negligence, they may also sue you for personal injury.
Your regular insurance policies can cover personal liability up to the limit stated in your coverage. Once you reach these limits, an umbrella policy will cover the rest. Thus, essentially, an umbrella policy is like secondary insurance.
Who Needs Umbrella Insurance?
In a perfect world, everybody would have an umbrella policy. Sadly, not everyone will benefit from it, and some don’t need it at all. People who don’t have their own home, don’t drive, and have little net worth will probably not benefit from an umbrella policy. But for the rest, an umbrella policy is a necessity, especially for people who fall into one or more of these groups:
Basically, people who have a lot to lose if they are sued should get umbrella insurance. Being careful won’t cut it in this world anymore, not when people can easily sue you for anything that you may cause.
Why Do You Need Umbrella Insurance?
The most obvious reason why people need umbrella insurance is the protection against devastating financial loss in case of a lawsuit. With an umbrella policy to cover you, you will take a hit from the suit but won’t lose all of your assets.
Not a lot of people recognize the importance of having umbrella insurance, but with this article, we hope you are convinced that you need one to protect yourself.
At Mauser & Tobin Co., Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (516) 747-0171. Get your free quote today by CLICKING HERE.