Umbrella Insurance

Is Umbrella Insurance Really Necessary?

Unfortunately, uncertainty is one of life's biggest realities. A neighbor's child might be bitten by your dog. A cyclist might be struck by your teen driver. A visitor might tumble down your steps. A multi-car collision might happen during a morning commute in the rain on tires that are beyond repair. In addition, you can be held responsible for paying for other people's losses due to injuries, property damage, mental anguish, lost wages, and other damages.

Fortunately, you have insurance. So, what if you are found legally responsible for $1 million even if your insurance coverage only covers $300,000 in liability? There is still $700,000 to pay. How else are you going to cover it?

The extra $700,000 will come from your policy if you have umbrella insurance and your coverage covers the incident. If not, it will be paid for out of your current assets, including your house and savings, as well as future assets, including your salary or an inheritance.

The truth is that everything you own—and will own—is at danger because it just takes one major accident and the ensuing lawsuit. Additionally, all of it can be protected with only one umbrella coverage.

In essence, an umbrella policy adds excess liability protection to the coverage your other policies currently offer. You'll need it in the event that you caused a major accident.

Get a quote right away if you're interested in learning more about how umbrella insurance could help to secure the life you've built.