Have you ever considered umbrella insurance as a supplemental insurance policy in order to protect yourself from financial catastrophe in the event you are in a car accident, boating accident or experience damage to your home? Umbrella policies cover costs that exceed the policy limits on your other types of insurance.
A possible scenario might be an expensive car accident. Let’s say that you hit an expensive car, like a luxury Audi, and that vehicle happens to have five people in it. The car is totaled, and the people all need medical care. This could quickly lead to claims that are above your policy limits. The good news is that an umbrella policy can help cover all those additional costs so that you are not sued by the other driver and the occupants of the other vehicle.
If you’ve never considered adding an umbrella policy to your insurance portfolio, today might be a good day to explore your options and get a quote to help make sure you are fully protected.
As an umbrella protects people during the rainy days, similarly, an umbrella policy is the answer to basic insurance that has been exhausted. Umbrella Insurance works as a supplement to an individual’s current policy, such as auto or liability insurance. It guarantees extra protection to the policyholder in case the limit of their normal policy is exceeded. Here are five significant reasons to get this policy for commercial or personal reasons:
1. For Covering Medical and Vehicle Expenses
In major car accidents, the expenses of repairs can exceed the policyholder’s insured amount. If this happens, the policy holder is responsible for the difference – unless they have Umbrella Insurance. An umbrella policy helps the policyholder to cover the difference in the coverage limit and the damages due. Additionally, the medical expenses for injuries sustained in a car accident or while on your property can also exceed the limit of a standard insurance. This is especially true in the event of a grave injury. For this, Umbrella Insurance is the best answer to cover the long-term medical expenses and legal fees.
2. Pays for a Commercial Lawsuit
If your business is facing a lawsuit, then an umbrella policy can help cover the amount that exceeds your coverage under a small business liability policy. It covers the injury caused to any person on the owner’s premises, and it can also cover any production errors that causes damages to the business’s clients or customers. An umbrella policy extends the coverage limit when general liability has been maxed out.
3. Home Renovations, Rentals, and Vacant Property
Home renovations are commonplace for homeowners and usually requires the assistance of outside help. Between power tools, power cords, and supplies laying about and new people in an unfamiliar place, the risk for an accident is high. Umbrella Insurance is one of the important tools needed when getting the job done in order to cover the risk of injuries during a home renovation.
Also, property owners can be considered liable if someone is injured on their vacant property. The property owner of the vacant land could be held responsible, even in cases of trespassing if negligence to maintain the property or ward off trespassers is present. Owners of rental properties may find themselves on the wrong end of a lawsuit if an accident occurs, even if they were not present during the accident. An umbrella policy can protect the property own against financial losses and legal fees.
4. Coverage for Your Assets
The standard liability used to cover your home, car, boat, or businesses may not always be enough to cover the potential risks that you may face. It is important to possess an insurance policy that can provide coverage when the standard limit is exhausted so that your personal assets do not come under scrutiny to pay for the difference.
5. Supports Other Aspects of Day-to- Day Life
Umbrella Insurance can also help the insured in many other ways too, especially in areas where their regular liability may not. With an Umbrella Insurance policy, you can have coverage against:
- An accident involving your pool.
- If your pet bites someone in the neighborhood or the delivery man.
- Your teenager crashes your vehicle in someone else’s property (like their fence or mailbox).
- If your small child destroys other’s property (like knocks over a timeless vase).
- Fire damage
- Accusations of libel or slander
To sum up, the umbrella policy helps commercial or residential owners when they exhaust their standard liability insurance policy. Umbrella coverage provides peace of mind to the insured as it protects them in versatile areas.