Every homeowner needs insurance, it’s just common sense. However have you ever thought about what to do in a situation where you’ll need more coverage than you have been originally provided? The extra coverage or layer of protection is known as umbrella coverage. It’s designed to be reserve coverage in the event that your current policy is not enough to cover a significant loss.
Umbrella coverage serves as an additional layer to the liability coverage in the event of a significant loss. The following examples are why umbrella coverage is essential to have on your policy.
1. Protect your assets
A lot can be at risk without umbrella coverage, some of which include:
- Defense Costs
- Attorney Fees
- Other lawsuit charges
2. Extra layer of coverage
Your homeowners policy liability coverage will cover up to a set amount to cover a loss. The umbrella coverage is utilized when your insurance limits may NOT cover the damages. Think of why we use an umbrella when it rains, our raincoat will keep us dry, but the umbrella serves as an extra layer of protection.
3. When would I ever need umbrella coverage?
Nobody ever thinks they’ll need the coverage until a tough circumstance arises. Think of being liable for the injuries or personal property of others and your current limits of insurance have a set limit to the damages.
Suppose you’re distracted while driving and drive into someone’s parked RV. Not only would you be liable for the damage to the property, but also to injuries people sustained while in the vehicle. Now if your limits of coverage don’t cover all damages to the property and the injuries without having umbrella coverage, your assets could be at a significant risk.
Don’t wait to add umbrella coverage onto your policy after you’re liable for significant damages. Call our office at 631-224-1000, our friendly staff will be happy to help you with alternate coverage options, questions about coverage or any insurance concerns you may have. We encourage our readers to post in the comments section. It allows us to improve the quality of our blog, connect with our audience and address your insurance concerns.