Umbrella Insurance: What it Does and Doesn’t Cover

It’s tough to predict whether you could end up losing a lawsuit that’s a result of an accident that takes place on your property or a car accident. You never know how much could be awarded to the party that wins, which means you’re at risk for devastating financial loss if this ever occurs to you. To prevent this financial loss that’s a result of unforeseen events, an umbrella insurance policy in Tuscaloosa, AL is an excellent investment.

Why Do You Need Umbrella Insurance?

Umbrella insurance ensures that your current and future personal assets, such as inheritance and wages, against the cost of a lost lawsuit due to an accident on your property or a car accident. Losing this type of lawsuit could result in you paying for the winning party’s lost wages, medical expenses, and more. This policy isn’t just for the wealthy. If you don’t have assets, it’s possible that your wages could be garnished to pay the winning party.

What Does It Cover?

What’s actually covered by umbrella insurance? This policy will give you coverage that goes beyond what your current auto and homeowner’s policies offer. It will cover amounts that go beyond your other policies and usually this policy will pay for legal expenses as well. Of course, policies can vary, so it’s a good idea to talk to your local TCU Agency to find out more specific details.

What Doesn’t It Cover?

It’s important to note that umbrella insurance is a type of personal insurance. This means it doesn’t protect from any lawsuits that are related to your business. It won’t cover high-risk, unnecessary uses of a vehicle, such as drag racing, and it may not cover all vehicles, such as farm tractors or recreational vehicles. You also won’t be protected if you have to pay restitution because you committed a crime.

Protecting your personal assets is important, and purchasing umbrella insurance in Tuscaloosa, AL isn’t expensive, so it’s easy to ensure you’re protected from devastating financial loss. Learn more about umbrella insurance by contacting your local TCU Agency for more information.