Do You Need Umbrella Insurance Coverage?
Umbrella insurance is a kind of personal liability insurance, meaning that it covers you when you are being held responsible for something that will need to be satisfied using your assets. Like its name suggests, umbrella insurance coverage can come in use under a wide range of circumstances, making it an excellent choice if you want comprehensive protection.
First, umbrella insurance will step up when the coverage provided by other insurance proves to be insufficient. For example, if your homeowners insurance has a limit of $200,000 but you have been ordered to pay $350,000 because someone slipped and fell on your premises, umbrella insurance can provide the remaining $150,000 so long as its limit is high enough.
Second, umbrella insurance will step up to provide coverage when other insurance will not. For example, if your homeowners insurance refused to cover you because the previous situation failed to meet its conditions, your umbrella insurance will still provide coverage up to its limit. This is true even for situations wholly unrelated to the coverage provided by the rest of your insurance.
That said, just because umbrella insurance coverage can be useful under the right circumstances, it doesn’t mean that it should be considered essential. With umbrella insurance as with other things, you should only buy it if you believe that you will need its coverage at some point in your life.
However, since the coverage provided by umbrella insurance is so wide-ranging, you should make your decision based on how risky you live your life in general rather than how risky you live your life under a particular situation. The riskier you are, the greater your incentives for buying umbrella insurance.
If you are interested in learning more about umbrella insurance before making a final decision, please contact us for more information.