Do I Need Personal Umbrella Insurance?

Insurance coverage is important, and as a responsible person, you probably already have homeowners, auto, and other types of coverage you and your family need. Unfortunately, in the event of an emergency, the coverage you have may not be enough. To prevent such a scenario from occurring, you need umbrella coverage to protect your most important assets. Personal umbrella insurance coverage can truly be one of the most important types of insurance coverage, especially if you have a home or automobile.

How Umbrella Insurance Works

Also known as excess liability or personal liability insurance, umbrella insurance supplements other policies you already have in place. Most often, it supplements homeowners, auto, or renters insurance and it will kick in if the coverage on those policies is exhausted. An umbrella policy is meant to protect your assets in the event of an unforeseen emergency. For example, if you are involved in a car accident, you could be held liable for any damages or injuries sustained by the other party. With an umbrella policy on your side, you will be covered for any resulting liability that is greater than the amount covered by your auto insurance policy.

When Do I Need Umbrella Coverage?

The assets you own are important, and there is arguably no greater asset than your stream of income. Umbrella coverage can protect your income and assets if you are forced to pay another person for damages out of pocket because you do not have enough coverage. For example, if a person falls on your property, they could potentially sue you, and if you do not have enough coverage, any additional damages you owe will have to come out of your pockets. This can create an enormous financial burden, but with umbrella coverage, there is no need to worry.

What Does an Umbrella Policy Cover?

Umbrella insurance covers expenses in the three following categories:

  • Property damage liability covers damages or losses to the property of others (ex: damages to another vehicle or building).
  • Bodily injury liability covers the costs of injuries sustained by others (ex: animal attacks, car accidents, injuries sustained on the property of the policyholder).
  • Personal liability coverage protects the policyholder if they are sued by another person (ex: slander, libel, mental anguish and shock).

Umbrella coverage can ensure your assets remain untouchable in the event you are held liable in court by another person. The amount of coverage you purchase should depend on the number of assets you have. In other words, the more assets you have, the more coverage you should purchase.

We Understand at Daniels Insurance Agency

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.