Umbrella
What it does...
Umbrella insurance is a type of insurance policy that provides additional liability coverage above and beyond the limits of a person’s other insurance policies, such as auto, home, or renters insurance. Umbrella insurance can protect a person’s assets and future earnings in case they are sued for damages that exceed the limits of their other insurance policies.
Why it's important...
Umbrella insurance is important because it provides an extra layer of protection against unexpected events, such as a serious accident or lawsuit. Without umbrella insurance, a person’s assets and future earnings could be at risk if they are sued for damages that exceed the limits of their other insurance policies.
What to look for...
When purchasing umbrella insurance, a person should consider several factors. The first factor is the amount of coverage needed. It is essential to review the limits of the person’s existing insurance policies and consider their assets and potential future earnings to determine the appropriate level of coverage needed.
Another factor to consider when purchasing umbrella insurance is the insurance company’s reputation, including their financial stability and customer service. It is essential to choose an insurance company that has a good reputation and is responsive to customers’ needs.
A person should also review the policy to understand any exclusions or limitations, such as certain types of activities that are not covered. Finally, a person should consider adding riders to the policy, such as coverage for legal fees or defense costs, to provide additional protection in case of a liability claim.
