You may be well-aware of auto, boat and homeowner's insurance, but an umbrella policy is another form of protection. When your basic insurance runs out, you're liable for the remaining balance on legal and medical fees, for instance. Save your assets with umbrella insurance.
Who Should Have It?
Anyone who has assets, such as substantial checking accounts, cars and real estate, should have an umbrella policy. You lean on these funds to pay off bills your other insurance can't cover. You're able to hold onto assets to keep the rest of your life running normally, including paying the mortgage. If you travel a lot, for example, umbrella funds help you during issues with a damaged rental car. Essentially, almost anyone with a successful career or family should look into umbrella coverage.
What It Covers
Umbrella coverage covers body and property damage above your basic insurance policy. Costs often rise out of control, activating the umbrella funds out of necessity. Lawsuits from injured tenants are covered, if you are a landlord. You're even covered for other lawsuit types, including libel, slander and other personal liability issues. There seems to be a legal process for every issue in life, even a dog bite, so protecting yourself with umbrella funds only keeps your financial health intact.
Accidents happen at any time to anyone. If you are involved in an accident with a high-paid doctor, for instance, his lost wages must be covered by your insurance. Because the victim has a high wage, your umbrella coverage can potentially cover all the costs. The main benefit to umbrella policies is financial protection. There's no worries about court, medical or pain and suffering charges. Selecting a large amount on the policy gives you flexibility during a lawsuit.
In general, apply for the largest policy amount possible. You're not covering your assets, but trying to cover possible charges from a potential victim. Whether an accident is the result of a car crash or boating incident, umbrella funds keep you covered.
Consider your financial situation and look into umbrella coverage today. With protection you can trust, any future legal issues are quickly resolved without financial ruin involved.