Do You Need Umbrella Insurance?
Umbrella insurance is not required so you may be wondering if it is worth the cost. Umbrella insurance helps with the uncertainties in life. A rainy morning commute could lead to you causing a fatal car accident or your dog could bite the neighbor.
While your home or auto insurance, policies can cover this, what happens when the accident is going to cost you more than your policy limits? This is where umbrella insurance comes in handy.
For example, if your policy only covers $300,000 of liability and the lawsuit you are held liable for is $1 million, this means you have to pay $700,000 out of pocket.
What You Should Know about Umbrella Insurance
When searching for an umbrella policy, there are a few things you should keep in mind. With an umbrella policy, your home or auto insurance is your first line of defense. After the limits of those policies are exhausted, the umbrella policy will then kick in to help pay for claims above your home and auto policy limits.
It’s not a standalone policy and you will be required to meet certain qualifications before you can purchase one. You can find umbrella policies between $1 million and $5 million. Consider your net worth when it comes to choosing your amount of coverage.
You may get coverage for things other policies don’t include. For example, umbrella coverage may provide protection if you are renting a boat or driving in a foreign country. Just one single policy will cover all the family members who reside in your household.
Contact Travers Insurance to get a quote on umbrella insurance.