Reasons Why You Need an Umbrella Policy Insurance
You might have heard of umbrella insurance, but aren’t sure what it actually does or why it’s important to have.
Umbrella policies are designed to cover you in the event that the liability protection your other insurance plans don’t work out, and in many cases can even help lower your premiums.
That said, there are many different types of umbrella policies, so let’s look at what they are and why you need them.
So here are the Reasons Why You Need an Umbrella Policy Insurance.
You never know when you might need it
Emergencies happen all the time. Whether you’re in a car accident, your house catches on fire or you slip and fall at work, there are plenty of reasons why you might need to file a claim.
And while it’s nice to have health insurance, medical bills can quickly add up to more than $100,000.
That’s where umbrella policy insurance comes in. With this type of coverage, you get an additional layer of exposure with limits above and beyond what most homeowners policies provide.
For example, if someone is injured because of something you did, they could sue you for money damages that include pain and suffering as well as other expenses like lost wages.
With umbrella policy insurance in place , those expenses won’t be coming out of your pocket; instead they’ll be covered by the additional coverage provided by the umbrella policy.
It can cover a lot
An umbrella policy is a type of liability insurance that kicks in once your other policies reach their limits.
It can cover a lot, so it’s well worth the investment. But if you’re not sure whether or not you need one, here are some reasons why you might want to consider it:
✓) Your house may be destroyed by fire. If someone accuses you of slander, libel or defamation of character and wins, you could owe them damages.
By having additional protection with an umbrella policy, these damages would not come out of your pocket.
And if you were sued for something like slander, which has no limit on how much damages can be awarded, an umbrella policy would protect you from paying more than what your coverage provides.
It can help with defamation claims
Umbrella policy insurance can help protect you from defamation claims if you happen to make a mistake or if someone sues you for libel or slander.
Defamation is when you make false statements that damage the reputation of another person and in some cases, it can lead to lawsuits.
If this happens and you have an umbrella policy, your liability coverage will kick in for those damages.
If not, you could be responsible for paying them out-of-pocket.
They are more affordable than you think: One thing many people are often surprised by is how inexpensive umbrella policy insurance actually is.In fact, depending on what kind of protection plan you purchase, it may cost as little as $10 per month.
which means that for just a few dollars each month, you’re getting great peace of mind!
It’s relatively inexpensive
An umbrella policy is a type of liability insurance that protects you from the costs associated with lawsuits.
It can be purchased for about $150 per year and its coverage ranges anywhere from $1 million to $5 million, depending on your needs.
If you think your current insurance isn’t enough to cover you in the event of a lawsuit, then an umbrella policy may be right for you.
✓) It’s relatively inexpensive: The cost of an umbrella policy is pretty low considering how much protection it offers.
Plus, it could save you hundreds of thousands of dollars if you’re ever faced with a large legal bill due to injury or property damage.
Insurance companies will typically recommend an umbrella policy for anyone who has less than $500,000 worth of personal liability insurance.
But even if your personal liability limit is more than $500,000 and you still feel like your coverage doesn’t provide enough protection against lawsuits, this type of policy may still be beneficial.
It can cover certain types of property damage
An umbrella policy is a type of insurance that can provide coverage for damages to your home, car and other possessions.
It can also help protect you in case you are sued for something unrelated to your business or if someone sues you for medical malpractice.
People with umbrellas can also receive coverage for libel, slander and invasion of privacy
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It can cover you for lost wages
Lost wages refers to the income you would have earned during a period of time where you are unable to work due to illness or injury.
If you don’t have lost wage insurance, this can lead to serious financial difficulties. An umbrella policy may provide coverage for your lost wages, up to the limit amount in your policy.
An umbrella policy could also be used as a form of liability protection: What if you accidentally injure someone?
Or what if someone has damages because of something you do or don’t do at work? If you have an umbrella policy, then it covers these cases.
The best part about having an umbrella policy is that it’s often less expensive than getting individual policies for each issue (ex: auto insurance and homeowners insurance)
It can give you peace of mind
An umbrella policy is an added layer of insurance coverage that can provide peace of mind.
It can protect you in the event that the liability limits on your other policies are exceeded. Here is another reason why having an umbrella policy might be a good idea for you:
-If you have a home and car insurance, but live in a high risk area, your car insurance may not cover anything outside of what’s covered by your home insurance.
That could mean that any medical bills incurred in relation to an accident would come out of your pocket.
That’s where an umbrella policy comes into play! If it covers things like medical bills, damages to personal property, or even pain and suffering, you’ll have one less thing to worry about.