Tips for Selecting the Right Umbrella Insurance

What happens if a major accident or a huge liability claim with costs that exceed the limit of your liability coverage occurs? How do you avoid financial woes? That’s where umbrella insurance comes in. 

What is umbrella insurance?

Umbrella insurance provides added protection when your existing insurance policies, such as auto or home insurance, reach their coverage limits. 

Say you are at fault in a multi-car accident that left several cars totaled and many people severely injured. Your auto insurance policy will cover the cost of damages and medical bills up to its maximum. Then, your umbrella insurance will kick in. 

Aside from covering damages to other people’s property or injuries to others, umbrella insurance provides coverage for problems such as: 

• Certain lawsuits, such as defamation of character and slander 

• Landlord liability

• Legal defense costs

Tips for choosing the right umbrella insurance

Now you understand what umbrella insurance is. Find the right policy for your needs with these tips: 

• Estimate the value of your assets

If you have considerable assets and are on the losing side of a lawsuit, your assets could be seized. Start by looking at your wealth picture, evaluating your income, property value, investments, and savings, and ensuring you buy adequate protection. 

• Evaluate your standard policies

Umbrella coverage picks up from where the limits of your standard policies end. So, look at the coverage limits of your existing insurance policies, such as auto and home insurance. Your umbrella policy should provide coverage beyond these limits.

• Compare umbrella insurance policies

After determining the coverage amount, you want to shop around for policies that offer the coverage you need. Compare coverage limits, deductibles, and premium costs and choose the right one that provides the best value in terms of protection and price.

• Reevaluate regularly

The more assets you have to protect, the larger your umbrella insurance should be. As you accumulate more assets that increase your risk exposure, review and adjust the limits of your umbrella insurance coverage to ensure it remains sufficient.

• Bundle your policies

Purchasing an umbrella policy from your standard insurance provider can qualify you for a discount, enabling you to save money while getting maximum protection.

Have peace of mind knowing you are covered no matter what

With the right umbrella insurance policy, you won’t have sleepless nights thinking about an imminent financial mess. You can enjoy peace of mind knowing that you have an extra layer of protection to safeguard your financial well-being. Contact us today to get umbrella insurance quotes.