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Before you can determine whether you need a personal umbrella policy, it’s important to understand exactly what umbrella coverage is, how it works and how much it costs.
What is umbrella insurance?
Personal umbrella insurance is extra liability insurance designed to help protect you from claims and lawsuits beyond your standard policy limits. It also covers claims that may not be covered under your other liability policies, such as false arrest, imprisonment or slander.
What does an umbrella policy cover?
An umbrella insurance policy can cover a number of situations, for example if a guest in your home falls down a flight of stairs and is seriously injured, you may be liable for the medical costs, plus a lawsuit if you are sued as a result of the accident. Your personal liability insurance will cover these costs up to your policy limits, but if the medical bills and legal fees are greater than your coverage limit, you are then responsible for paying that amount out of pocket. However, if you have personal umbrella insurance, it will kick in and cover the extra payments.
While you may not believe your particular lifestyle warrants additional coverage, the truth is, you just never know when a significant accident or situation could arise. If you find yourself in the middle of a lawsuit, your savings, assets, and even retirement funds could be at risk. Knowing you have the coverage and protection you need to avoid a future of financial headaches could be well worth it.
Benefits of having personal umbrella insurance
Now that you’ve had a refresher on what umbrella insurance is and how it works, you may find that having supplemental protection is the right fit for you. Here are some other advantages:
- Serves as additional coverage – Umbrella insurance will only kick in once you have exhausted coverage from your other liability policies. If you are found to be responsible for $400,000 in damages due to an accident in your home, but your homeowners insurance only covers $300,000, your umbrella policy will cover the $100,000 difference.
- Provides protection for your assets – Without umbrella insurance, the court could go after your assets or your personal property to cover damages associated with an accident.
- Affordable – Personal umbrella coverage is typically low in cost, providing you with the peace of mind you deserve at a price you can afford. Many find that being financially prepared to deal with an unexpected circumstance makes up for the extra cost.
How much is umbrella insurance?
The cost of umbrella insurance policy varies depending on the amount of coverage you need to adequately cover your assets. Learn more about umbrella insurance policies and speak to a Nationwide insurance agent about the level of umbrella coverage that's right for you.
For more information about personal umbrella insurance, and to find out the right level of coverage for you, speak with a Nationwide agent today by calling 1-877-On Your Side (1-877-669-6877).