Ever heard of umbrella insurance? It’s a special kind of liability insurance that gives you extra protection on top of what you already have with your home, car, or renter’s insurance. While your usual insurance acts as a cozy covering, umbrella insurance acts a sturdy shelter that comes in handy when the storm of big claims or lawsuits that exceeds you standard limits hits.
Why You Need Umbrella Insurance:
Life can be unpredictable. You might think you’re all set with your regular insurance policies, but sometimes things can get out of hand. For example, say you’re in a car accident that’s really bad, and the bills start piling up way more than your car insurance can handle. That’s when umbrella insurance swoops in, covering the extra costs.
How It Functions
So, how does this policy work? Well, when the money from your usual insurance runs out, your umbrella insurance kicks in. You pay a yearly fee for this extra security, and the coverage usually starts at $1 million. If you’re ever sued for more than your normal policy can pay, your umbrella policy takes over, making sure you don’t have to dip into your savings or future earnings. For instance, if your auto insurance covers up to $300,000 in liability and you’re sued for $1 million, your umbrella policy would cover the remaining $700,000. It’s like having a secret piggy bank that only opens when you really need it.
What It Covers
Umbrella insurance kicks in when the liability limits of your standard insurance policies are exhausted. Umbrella policies also extend coverage to certain situations that might not be included in your standard policies, such as libel, slander, or false arrest. This broadens your protection and provides peace of mind in various scenarios.
Types of Coverage Provided
Umbrella insurance offers a wide range of coverage, including but not limited to:
Personal liability
Protects you against claims of bodily injury and property damage to others.
Legal defense costs: Covers legal fees associated with lawsuits, even if you’re not found liable.
Rental property liability
Extends coverage to any rental properties you own, offering protection against liability claims.
Worldwide coverage
Provides protection for incidents that occur outside the United States, ensuring you’re covered no matter where you are.
Where Providence Financial Services Comes In:
We always encourage our clients to get extra coverage for themselves and the umbrella insurance offers this coverage. To help you get the right insurance, we will assess your current coverage and identify potential gaps where umbrella insurance can be beneficial. We will see to it that you have a reliable extra layer of protection to safeguard your assets and future.
