Do You Need Personal Umbrella Insurance?

Personal Umbrella insurance is a policy that extends over your standard auto or homeowners liability insurance coverage. It works by providing that extra protection when you need it the most. Oftentimes individuals will find themselves in a situation where a typical policy can not fully meet their insurance needs as they have exhausted its limits. Are you someone who may need coverage beyond a standard policy and want peace of mind knowing you want to be limited with your financial protection needs? Here is a further look into personal umbrella insurance so you can determine it is right for you.

Coverage Limits

Your coverage limits will vary greatly depending on your insurer and the type of coverage you opt for. It is especially important to protect your assets if you are an individual who has acquired a high net worth. You will have to consider all of your assets, such as your savings, equality in your house, and even your furniture. Are they at risk if an incident was to lead to a large lawsuit against you? If they would be or you are not sure, it may be in your best interest to speak to your insurer about how personal umbrella insurance might be beneficial for you. Here are just a few of the many important areas that personal umbrella insurance can cover:

• Excess car and home liability
• Libel and slander
• False arrest
• Malicious prosecution
• Personal psychological harm and mental anguish
• Legal defense costs
• Overseas travel liability

The Ins and Outs

The purpose of personal umbrella insurance is to offer a broader range of protection in scenarios that call for coverage that surpasses standard limits. It is particularly beneficial for those who are at higher risk of major financial loss, whether that be to high net worth or to protect future earnings. It is advised to add up to the total value of all your assets combined, and if it exceeds your auto and homeowners insurance, then personal umbrella coverage might be a smart investment for you. Certain lifestyles can also make someone more at risk for liability claims, such as owning a swimming pool, having a trampoline, owning a dog, or having teenage drivers. Note that personal umbrella insurance is considered a supplementary form of coverage; therefore, to secure it, you must first obtain the maximum level of coverage available on your other liability policies before you can purchase it. To learn more about personal umbrella insurance, speak to your insurance agent. They can help you evaluate your assets.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors. Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!