04 Feb February 10th is National Umbrella Day!
When a person works hard and saves money, they do it to guarantee their financial future. Unfortunately, people sometimes end up in a situation where they lose many of their assets due to an accident; if you are involved in an accident without proper liability coverage, you can end up paying for damages out-of-pocket. Many people choose to buy an umbrella insurance policy to avoid this nightmare scenario; if you have assets, you need to do everything you can to protect them.
How Does An Umbrella Policy Work?
Umbrella policies kick in when your regular insurance liability coverage gets maxed out; they can be purchased to supplement both auto and home insurance. Umbrella policies are specifically designed to offer protection against large liability claims or judgments; this is beneficial for people who can’t afford to pay for the costs by themselves.
Why Should You Buy An Umbrella Policy?
Today, lawsuits are common; you never know what types of damages you may end up being sued for. Let’s say someone stops by your home and slips on your front steps. This type of accident is quite common, and it can end up costing you way more than you can afford. Your regular insurance will cover damages to a certain extent; but after that, you are on your own.
Let’s say the person who fell makes a lot of money at their job; if they sue you for a million dollars, you are responsible for everything that your regular insurance doesn’t cover. A standard policy will cover about $250,000; you are on the hook for the rest.
If you have an umbrella policy, it kicks in as soon as your regular liability coverage runs out. As soon as you get sued, you are protected; your lawyers and lost wages from court appearances are all reimbursed. If you happen to lose your case, the judgment is paid off by your insurance company.
Umbrella policies are usually sold in million dollar increments. They are a great way to offer yourself and your family an extra level of protection. If you drive a car or own a home, you need to protect the assets that you work hard for by purchasing an umbrella policy.