With so many insurance policies and types of coverages out there, it’s very easy to get confused as in which one to choose and whether or not it’d offer you the coverages you want. Umbrella insurance policy is one of the most misunderstood policies in the world of insurance. Some people simply believe that umbrella insurance policy is for the rich - which is not at all true.
You might have a bunch of insurance policies for all your specific needs, however, an umbrella insurance policy could save you in the event of an unforeseen lawsuit. A personal umbrella insurance policy is far better than any other out there since it is designed to protect you and your assets when other policies merely deny.
What Umbrella Insurance Protects?Bodily injury or liability: If you are having an umbrella policy, it’ll cover the medical bills and/or other liability claims due to damages of another person’s body. An umbrella insurance will cover all the damages where you are at fault - like if someone is attacked by your dog, or any mishap befalls your property like someone get’s hurt while doing something on your property.
Property damage liability: An umbrella insurance policy also covers damages caused to another person’s tangible property - like you meet an accident where you are at fault, or if your kid causes any damages to his/her school property.
Rental damage liability: An umbrella insurance helps cover the costs of liability that you might face as the owner of a house - like if someone falls and hurts themselves on your property.
The Issue of Affordability
The best thing about umbrella insurance is it comes within your budget. Since umbrella insurance only comes into effect when all your existing policies fail to cover the loss, often you get up to $1 million of coverage for a premium that your budget allows. And undoubtedly, such a privilege always comes as a life-saver.
A market study by Consumer Reports in 2013 reveals that only 10% of the homeowners carry this certain kind of insurance. If you don’t fall in this group, you are risking everything you have done in your life. If you want to know more about umbrella insurance or the monthly premiums, check out this article by Insurance Information Institute.
