Understanding Personal Umbrella Insurance: What is it and Why do You Need it?
Personal umbrella insurance is an extra layer of liability coverage that provides protection above and beyond the limits of your regular insurance policies. This type of insurance is designed to protect you in the event of a lawsuit or claim that exceeds the limits of your other insurance policies.
A personal umbrella insurance policy can cover a wide range of incidents, including:
Bodily injury or property damage caused by you or a member of your household
Libel or slander
Legal defense costs
For example, if you're found liable for an auto accident that results in significant property damage or personal injury, your auto insurance policy may not provide enough coverage to pay for the damages. In this case, your personal umbrella insurance policy would step in and provide additional coverage to protect your assets.
It's important to note that personal umbrella insurance is not required by law, but it's a wise investment for anyone who wants to protect their assets and financial security. This type of insurance is relatively affordable and can provide peace of mind in the event of a lawsuit or claim.
When choosing a personal umbrella insurance policy, it's important to consider the limits of your existing insurance policies, as well as your personal circumstances and risks. This will help ensure that you have the coverage you need to protect your assets and financial security.
