What is Umbrella Insurance and Why do You Need it?
Umbrella insurance is a type of insurance policy that provides additional coverage when your other insurance policies reach their maximum amount. Every insurance policy has a maximum amount of coverage, but if there is an incident that requires more than that amount, this policy will kick in and help prevent you from spending money out-of-pocket.
Who Needs Umbrella Insurance?
Just about anyone is at risk of being sued, whether you are a homeowner or business owner. If you own a small business and due to the inclement weather, the floors inside your office get wet, a customer might slip and fall and sue you for damages. If their injury costs more than what your other insurance policy covers, this insurance policy helps to pay the remaining legal or medical costs.
Why is it So Important?
Lawsuits can affect more than just the money in your bank. If you are sued for a large amount of money due to lack of insurance coverage, the courts can take money from your future earnings, savings account, investments, or retirement funds. To avoid this, you can get this type of extended insurance policy so that no matter what happened, you have that additional coverage.
What Does it Cover?
Umbrella coverage policies include a variety of areas of coverage. It will cover bodily injuries, such as someone falling down the stairs in your home or someone injured in a vehicle accident you were involved in. It also includes property damage for residences and businesses, as well as vehicles. Other areas of coverage include for your rental units, false arrest, mental anguish, libel or slander, and various personal liability cases.