The Basics of Umbrella Insurance

Even if you have insurance on your car, boat and house, that doesn’t mean your personal assets are safe from legal claims. Umbrella insurance is designed to fill in the gap that lies beyond the limits of standard insurance policies, as well as address some types of incidents that aren’t covered by normal policies. Think of this type of insurance as a safety net that provides an extra layer of security against liability claims against you.

Umbrella policies address several types of financial claims, some of which are already partially covered by standard policies, including injuries to other people and property loss. In most cases, this type of insurance kicks in when you are at fault and therefore liable for damage caused to something or someone else. This policy can help cover costs associated with serious car accidents that are your fault, as well as personal injuries to someone who is visiting your home.

Aside from incidents involving injuries, umbrella insurance can also protect your investment in certain objects and property. The destruction of a rare or expensive furnishing in your home, like a rug or carpet, could be covered by the policy. It can even mitigate the financial loss caused by your kids at school or in another shared environment. An umbrella policy also protects your assets if you are sued for libel, slander, malicious prosecution or similar accusations.

A personal umbrella policy is not only a great way to protect yourself from extremely high or unexpected financial claims, but is also a tool to guard your entire family’s assets from pursuit. Even if the limit on your auto or homeowners insurance policy seems really high, that doesn’t mean it will completely protect you from the calamities that life throws at you. An umbrella policy is the best way to give yourself and your family an extra layer of financial security, so you are prepared for whatever comes next.