09 Aug In Our Litigious Society, Umbrella Insurance Is a Must!
So, you have your home, cars, and other possessions completely covered by your insurance policies and you’re probably thinking that you have all the coverage you could ever need…but you may be wrong! In a world where people sue over anything and everything, your primary insurance policies may not offer you the amount of coverage that you need. For example, say someone is hurt in auto accident that you cause, and they decide to sue you for the medical problems that you’ve created. Your auto insurance will only cover you to the limit that the liability portion covers, after that you’re on your own. This is when an umbrella insurance policy steps in. Umbrella policies provide an extra cushion of insurance protection when your primary policy coverage is exhausted.
Continue reading to learn what umbrella insurance is and why it may be your saving grace if you’re ever involved in a disaster.
What is Umbrella Insurance?
As defined by Investopedia, umbrella insurance is “extra liability insurance coverage that goes beyond the limits of the insured’s home, auto or watercraft insurance. It provides an additional layer of security to those who are at risk for being sued for damages to other people’s property or injuries caused to others in an accident. It also protects against libel, vandalism, slander and invasion of privacy.” Basically, an umbrella policy picks up where you home or auto insurance policies leave off. For anywhere from $150 to $300 a year you can buy a $1 million umbrella policy.
In our society, lawsuits are everywhere and one can never predict if they’re next in line to be sued. If an unfortunate accident were to occur would you have enough liability coverage under your primary policies to be protected? Since no one can predict an accident or lawsuit, umbrella insurance is now a needed protection for every policyholder.
Still have questions about North Carolina liability insurance? Visit our website or call Spivey Insurance Group today at 877-318-5951 to talk to one of our helpful agents. Also, to stay up to date on the latest in the insurance world and for more helpful hints and money saving tips follow us on Facebook and Twitter!