An umbrella insurance policy is a safety net for liability risks and can cover you in the event of a disaster. No matter how careful you are, the unexpected can leave you facing financial disaster. Umbrella coverage can handle those financial obligations for you in many cases.
Why an Umbrella Policy Can Help
You may need to understand how many things umbrella policies can cover. When you see the scope of this coverage, you can better understand its value.
Umbrella Insurance Offers Blanket Liability Coverage
You might not need umbrella coverage because your home and car policies already include liability protection. You may need to increase coverage limits. In today’s litigious times, you can face significant liability losses. Umbrella coverage provides greater liability limits and extends coverage for losses beyond your home and car insurance coverage.
You May Benefit From an Umbrella Policy
Umbrella coverage is generally a wise investment for most people, but it is highly beneficial for some. If you are at greater risk of significant liability losses, you should opt for umbrella coverage.
Some instances that put you at greater risk include:
- Serving as a public official or in the public eye
- Hosting large events at your home
- Have significant assets or a high-value estate
- Increase liability risk with a pool, firearms, or dogs
- Volunteer your services to organizations
These factors can make you a target for liability claims, which is what umbrella policies are good for. The more you stand to lose if faced with a liability lawsuit, the greater the benefit you could have from a liability umbrella.
You Can Choose Your Coverage Limits
When you look at umbrella coverage, the policies are pretty versatile. Umbrella liability limits can be much higher than traditional policies, with million-dollar liability policies easily accessible.
Consider your lifestyle, the financial position you portray, and any liability concerns you might have when choosing the limits for your policy. You should aim to balance the policy’s liability limits with the premiums you can afford to pay so that the policy is maintainable.
You should also consider the maximum amount you might face losing if something should happen. For example, if you regularly have guests on the property and you have a swimming pool, consider the cost associated with multiple injuries from the swimming pool. As a hunter, think about how much you stand to lose if an errant bullet causes damage or you mistakenly target a domestic animal financially.
Understand Your Umbrella Insurance Coverage
When you secure your policy, make sure you read the exclusions page as well as your coverage declaration. Most policies will not cover intentional acts, incidents for which your business is responsible, or your own injuries. Umbrella insurance should cover costs for others affected by an incident you were liable for.
About Brooks, Todd & McNeil
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community the best and most affordable policies from a variety of providers. Our dedicated facilitators are ready to put their 75 years of combined experience to work on your claims. To learn more about our products and services, contact us today at (800) 448-4567.