When Do I Need an Umbrella Insurance Policy?

You may have heard of umbrella insurance policies, but are unsure if one is relevant for your lifestyle or business. You may be asking yourself if it’s a good idea to consider an umbrella insurance policy along with your auto, home or commercial insurance policies. First, consider what an umbrella policy will cover that your current policy(ies) won’t:

  • Umbrella insurance provides extra liability insurance coverage in addition to your current insurance policies
  • Umbrella insurance covers a large variety of lawsuits- including grisly accidents, frivolous lawsuits, accidents, malpractice, disability and workers compensation insurance as well as legal fees
  • Umbrella insurance can be applied for auto, commercial and home insurance policies

Umbrella insurance is a surefire way to practice risk aversion. Consider that most home and auto policies will cover their consumers for up to $500,000. Yet, 13% of liability awards, personal injury settlements, awards and judgements are over $1 million. With general policies, you are left holding the liability to pay from your own pocket. An umbrella policy provides that additional, much needed protection.

Why Invest in an Umbrella Policy?

If you are sued for any reason, your assets immediately are at risk. Your assets include your income, your car, house, bank accounts as well as any investment and even retirement accounts and future income. Without an umbrella policy, your assets become prey to lawyers and potential lawsuits and thus, they can be drained and squandered through judgments, awards and exorbitant legal fees. Investing in an insurance policy is a way of being proactive in the case of unforeseen circumstances. Don’t lament after losing your assets. Learn more and get started with an umbrella insurance policy today.

TCU Agency – Blog Order – October 2017