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Do You Need Umbrella Insurance Policies?

America’s judicial system is designed to be fair and just. Unfortunately, if someone knows how to work the system, they can play it to their advantage. The fact is, you can get sued for just about anything today. 

In our world of lawsuits designed to make extra cash, it’s no surprise that many people are choosing to get extra liability coverage to doubly make sure they are covered in the case of any sort of incident. Umbrella insurance policies are one of the best ways to get extra coverage for your assets.

What is Umbrella Insurance?

Umbrella insurance is a secondary type of liability insurance designed to provide further coverage of your assets, beyond the standard liability you have for your home. Umbrella insurance policies can help protect you if you get sued over something that happens on your property, as well as legal defense costs should you be accused of damages to other people’s injuries or property.

For example, let’s say you have some guests staying with you for a few days. While they’re with you, one of them slips in the kitchen, falls, and breaks their arm. They could sue you for emotional pain and suffering, as well as for the injuries. Some insurance policies can cover this type of personal liability, but not all do, and most don’t cover enough of it. 

If you’re under-insured in a situation like the one just mentioned, and the person sues you and wins, you’ll have to pay a great deal. But, if you have an umbrella policy, it will take effect as soon as you meet your coverage limit on your primary insurance. 

In the event that you are sued for something that happens on your property—as well as other situations—umbrella insurance will pay for legal expenses, protect you if you lose, and take care of lawyer fees if you win. 

Who Should Use Umbrella Insurance?

Who should use umbrella coverage? Anyone can get umbrella insurance. It’s fairly inexpensive because it only comes into play after you’re homeowners or auto insurance does what it can to cover a given situation. Without a doubt, the cost of umbrella insurance policies is dwarfed by the potential damages if you need it and don’t have it. 

If you don’t own a home, have potentially dangerous equipment on your property, or have little to no net worth, you probably don’t need umbrella insurance. 

We recommend getting an umbrella insurance policy if you fall under one or more of the following categories:

  • You coach a sports team

  • You own or rent a car, boat, etc.

  • You own rental properties

  • You volunteer

  • You are a parent

  • You have a dog or another pet that could qualify as dangerous

Any of the above can put you in a position to get sued. Learn more about umbrella coverage with Insurance Center Associates, and discover what we can do to help you get the coverage you need.