Probably some time in your adult life (or maybe even in your young adult life)- the life that involves insurance policies- you might have had a nightmare that you crash your car into a billionaire’s car on the road one day and through all sorts of legal processes your finances and entire life savings gets wiped out. Your home gets taken by the bank and you spend your life paying towards the millions of dollars of damage that was caused. Some people never have this nightmare because they have had the foresight to cover all their major assets with umbrella coverage.
What is umbrella coverage? Umbrella coverage or excess liability coverage covers the costs of lawsuits and medical bills from auto accidents, the accidents on your property from a neighbor tripping and breaking her back on your sidewalk to your son driving his jalopy into your swimming pool accidentally. When your other liability coverage plans have been exhausted in an unfortunate accident, umbrella insurance can step in and cover the extra. It was named such because the coverage is like an umbrella sitting over both your homeowners insurance and your automobile insurance for extra protection.
So why do people need umbrella insurance? In these days, lawsuits are prevalent. Homeowners insurance, automobile insurance, and watercraft insurance all place a limit on the amount of liability insurance you can have. No longer is umbrella coverage just for wealthy people but for everyone.
Umbrella coverage is a way to secure your belongings and other assets from being ripped away from you in case of a major lawsuit. Your home need not be taken. Your car need not be impounded. Additional liability coverage can be inexpensive and well worth the extra money. In addition to all these benefits, extra liability insurance covers any non-business activities anywhere around the world.
Why risk a lawsuit that your homeowners insurance and automobile insurance will not cover? Provide for yourself and your family by supplementing more money to your umbrella coverage. In case of a lawsuit, there will be nothing more valuable than your umbrella coverage.
In addition to being fairly inexpensive, umbrella coverage is easy to coordinate with your existing insurance such as your automobile insurance policy or your homeowners policy. You can set your amount from $1 million even up to $5 million in extra coverage.
When deciding how much to purchase for your umbrella plan, think of a several important things. Do you live in a relatively wealthy area that could potentially make you a target for a lawsuit? Do you travel frequently or entertain others often? Do you operate your business from home and see clients coming in and out often? It is necessary to have umbrella insurance for a decent amount if you see frequent visitors.
Some people see the high deductible as a barrier point to purchasing umbrella coverage. Often umbrella coverage insists that the homeowners liability and the automobile insurance liability equal that of your umbrella deductible. In addition to that, it is wise to carry homeowners insurance, auto insurance, and umbrella coverage with the same company. Trying to deal with several insurance companies during the whole issue may be a nightmare in itself as well as trying to deal with the situation at hand. While you may think that this could or would never happen to you, join the countless others who have lost all they had and continue to pay today because of their lack of coverage. These lawsuits are not seen everyday but they do happen occasionally and the results devastate the people involved. Many testimonies can persuade and plead with you to take a part of such coverage. Do it yourself and experience the peace of mind that comes with the coverage. You know for sure that if anything happened, you would be covered.
You may not be ready to take the step of purchasing umbrella coverage, but are you willing to take the risk knowing that so much is on the line? Be prepared for anything. Cover your assets with the umbrella. Try to keep the insurance all with the same company and your insurance experience will be much more pleasant despite the circumstances.
Many different companies offer umbrella coverage. Start finding your custom auto insurance quote right now using the tool at the top of this page!
The Beginning of Automobile Insurance