Learn more about this specialty form of insurance.
While many individuals feel secure with the liability protection offered by their standard insurance policies, it’s important to understand that all forms of insurance are subject to certain limitations. For instance, while your homeowners or auto policy will offer some coverage for liability issues, this coverage is capped at a certain dollar amount. This means that, if you are facing a particularly expensive liability claim, then you might not have enough coverage to address your costs completely. Fortunately, you can address these liability coverage gaps by securing the right umbrella insurance policy. Here are some compelling facts about this unique form of insurance.
- Umbrella Insurance Offers Protection Against Liability Risks
As previously mentioned, umbrella insurance can be used to address the liability coverage gaps left by your other existing policies. This means that, when a liability claim exceeds your existing policies’ coverage limits, umbrella insurance will swoop in and cover the remaining cost of the claim.
- Without Umbrella Insurance, Your Assets are at Risk
If you do not have umbrella insurance, then you are leaving your assets vulnerable to a major lawsuit. For instance, imagine that you are involved in an at-fault accident. While your auto policy might cover the injuries and damages of the other driver, you might not have enough coverage to deal with your legal costs if the affected party decides to sue. To cover this cost, you might have to sell some of your valuable assets to come up with the money. To make matters worse, if the court deems that you own the injured driver further compensation, then you might have to forfeit even more of your assets to cover this cost.
- Umbrella Insurance is Very Affordable
Finally, umbrella insurance is one of the most affordable types of policies available. In fact, most insurance companies charge an average of $250 annually for this coverage. As your umbrella policy can offer millions of dollars in excess liability coverage every year, this is an extremely good return on investment for policyholders.
This is what you need to know about umbrella insurance. Are you interested in securing this supplementary personal coverage? If so, then contact the experts at East End Insurance Agency. Our dedicated team is eager to get you the coverage that you need today.