Who Needs Umbrella Insurance?

If you are seriously considering an umbrella insurance policy, there’s a good chance you should purchase it. Just like any other policy, it exists to offer peace of mind and reduce risk when it comes to your assets and personal property. It’s a simple fact that unfortunate events and accidents happen all the time. It’s also true that personal lawsuits are filed frequently when injury or damage is done as a result of these events. If this is of concern to you, it is time to review umbrella insurance policies. 

What is Umbrella Insurance?

As a reminder, umbrella insurance acts as liability insurance and protects other people and their property if damage is done by you or any member of your household. For example, suppose multiple people injured themselves at a party at your residence and sought compensation for medical bills, lost wages, and psychological damage. In that case, you could be looking at a ruling that far exceeds the limits of your homeowners policy. In this situation, you would have to pay the injured individuals from your savings or retirement fund. 

It only takes one second for someone to trip down a flight of stairs, fall into a swimming pool, be attacked by a dog, or get into a collision. In this instant, your hard-earned assets become compromised because those assets can be seized if you can’t pay damages beyond your regular insurance limits. 

You must ask yourself, am I at risk of being sued? The short answer, of course, is yes. That’s because anyone can be sued, and accidents (even big and expensive ones) happen all the time and to anyone. But there are certain factors to examine to see if you are at a higher risk of being sued. If you rent your home or property to others, own a large amount of land, or host large social gatherings, you should purchase umbrella insurance. If you are a public figure or have a higher net worth, it is imperative. If you own a trampoline, pool, hot tub, or large animals, you are a candidate. Even if you have teenage drivers in your household, you are at a greater risk of being sued and should consider it. 

Do You Need Umbrella Insurance?

At the end of the day, umbrella insurance offers a massive amount of coverage for a mere couple hundred dollars a year. As an addition to your existing home and auto insurance, you won’t even have to pay an additional deductible for it to pay out, so long as home or auto insurance would apply. For the protection and peace of mind, umbrella insurance is a fantastic value and a great benefit to many.

Call us today to learn more about why umbrella insurance might be right for you!