Things to know about Umbrella Insurance
Umbrella insurance is a kind of coverage that safeguards many things all at the same time. This kind of insurance policy is designed for those who need the flexibility of a customizable protection plan. Umbrella plans tend to be line-item plans that offer specialized coverage for various items and situations. Not every insurance provider underwrites this kind of plan and the average person will likely have a difficult time in obtaining one without what the insurance company deems a good reason to have it. That being said, an umbrella plan often provides substantial discounts for each individual plan that falls under its “umbrella” of protection.
Umbrella insurance is a type of coverage that one might wish to look into as a hedge against extra liability. Usually it is there to protect one who might be more exposed to potential lawsuits and from big claims. Having this protection can help protect you and your family’s financial future and hard-earned assets.
What it does
Umbrella insurance provides an extra layer of coverage that moves beyond the limits of traditional coverage for anything from your home to your car and even to a boat. It can also protect you for any claims against you such as slander, libel, false arrest or from lawsuits. An example would be a legal claim from renters you might have. It is engineered to activate when the liability on your existing insurance policies has been exhausted.
Who it benefits
Umbrella insurance can be a financial; life-saver for those who own rental units. It protects the landlord from such actions as claims from injuries or even a dog attack. People involved in an car accident or some other type of event in which property is damaged can also greatly benefit for this added protection. So can an person benefit who might be held responsible for the injury to another due to an accident or another scenario, like their dog biting someone.
Put simply, it is yet another way for an insured individual, often one who is well heeled, to protect him or herself from costly out-of-pocket responsibility.
Options for coverage are often made available in amounts starting at around one million dollars. However, keep in mind that there are even larger limits available for those desiring extra added protection. The big plus of this type of coverage includes asset protection, an invaluable sense of peace of mind and a relatively low cost for the coverage.