Umbrella insurance: what is it?
This is a type of liability insurance that provides ample protection for you and your assets in case of a lawsuit. It’s also commonly referred to as excess liability coverage. For clients who need protection more than what their own policies can provide, an umbrella liability insurance policy makes for a sound option.
Do I need one?
The policy works best in protecting you and your assets against a lawsuit or any claims that might be filed against you, says The Balance. Think of it as a cost-effective way for you to protect any of your established assets. If you have any, then this is a non-expensive way for you to cover all your bases, just in case.
What does it cover?
An umbrella liability insurance policy covers legal fees that go towards paying for your legal fees to defend yourself against a lawsuit. It also covers the cost of a settlement or judgment if it exceeds the liability limits set for your home or auto insurance policies.
Benefits of the policy
The biggest benefit is that you get liability insurance that’s going to cover big-ticket costs like property damage, bodily injury and landlord liability, among other things. It’s a low-cost option that gives you the peace of mind you need. In case something happens, you won’t have to worry about the court collecting the damages out of your personal property. It also covers the cost of treatment in case someone is injured on your property.
Where to get one?
Look for a reputable insurance provider in your area. A company that’s been around long enough should make for a trustworthy option. Don’t forget to read the policy terms and conditions thoroughly since package inclusions and handy side-bennies might differ from one provider to another. Choose wisely.