April 1, 2021
You probably already have a variety of insurance policies to protect your assets and loved ones. So you may be thinking, why would I need more insurance? Well, you may have overlooked an important and affordable type of insurance that can protect your finances: umbrella insurance. Read below to see who would benefit most from a personal umbrella insurance policy and why you would need it.
What is Personal Umbrella Insurance?
Umbrella insurance is a type of personal liability insurance that covers claims that exceed regular homeowners, auto, or watercraft policy coverage. It’s not a standalone coverage policy, but it serves as a supplement to other liability coverage policies that most people already have.
What Does it Cover?
The things personal umbrella insurance covers can be divided into three categories: bodily injury liability, property damage liability, and other personal liability.
Bodily Injury Liability- This covers the cost of injuries to another person due to a car accident, a pet owned, or fall at the policyholder’s home.
Property Damage Liability- This covers the costs of damage or loss to another person’s tangible policy. It will cover things like:
- Damage to vehicles or other property
- Claims in connection with damage caused to the property of others
- Accidental damage caused to school property by a child
Other Personal Liability- This covers all other actions a policyholder could be sued for, such as slander, libel, malicious prosecution, and mental anguish.
Why is it Important?
If you become the target of a lawsuit, having umbrella insurance will be very important. This is especially true if you are sued for a substantial amount of money that your regular home, auto, or life insurance can’t completely cover. Without umbrella insurance, you’d be left to pay the remaining fees associated with the lawsuit out of pocket. This could create a significant financial hardship. So, it’s important to have an umbrella policy that will pay for your legal expenses and protect you if you lose the case.
When is it Worth it?
Anyone can end up as the target of a lawsuit these days. Since that is the case, umbrella insurance has quickly become a popular type of liability insurance. But, if you don’t own a home, have little to no net worth, and don’t keep any dangerous equipment on your property, it may not be worth getting umbrella insurance.
However, if any of those things apply to you, or you fit into any of these categories, umbrella insurance may be worth it if:
- You own vehicles
- You coach youth sports
- You have a dog or a dangerous pet
- You host events often at your home
- You own rental properties
These are just some of the many instances when an umbrella insurance policy is worth having.
Get Covered Today
Ready to protect yourself with personal umbrella insurance? Look no further than American Heritage Insurance. Our Maryland insurance agents can find you a policy that will best protect you without breaking the bank. Contact us now to request a FREE quote.