Myths About Umbrella Insurance

Umbrella Insurance Is Expensive

Contrary to belief, the cost of Umbrella Insurance depends on the level of risk, not on its exclusiveness, or how rich you are. Maybe you need Umbrella Insurance because suddenly, you have a teenage driver in your home, and she needs more protection when using the family vehicle.

Or imagine you suddenly inherited valuable jewelry, and you want to enhance your actual coverage scope because you want to keep them safer until you sell them. It doesn’t mean it always will be expensive, you’re simply enlarging your coverage limits and willing to pay for a higher rate to ensure peace of mind.

Only Wealthy People Need Umbrella Insurance

Umbrella Insurance protects everyone, regardless of their financial status. It ensures a broader coverage for injuries or damage in your standard coverage, and while wealthier people may have more financial flexibility, Umbrella Insurance is beneficial for anyone facing liability claims or lawsuits.

Is a matter of choice and how you choose to invest your money. Just because you’re accessing insurance coverage, doesn’t mean you won’t have to pay for anything in the event something happens in your home, for example. Umbrella coverage enlarges those limits, and many times that is a better investment because you’ll receive a much more reliable protection compared to the extra money you’ll pay every month.

Umbrella Insurance Replaces Home or Vehicle Liability

It’s important to highlight that Umbrella Insurance is a supplementary policy, not a stand-alone one. In other words, if you want to have Umbrella, you’ll need to get insurance first. It’s an extra layer of protection and only will be available once you have Motorcycle, Homeowners, Condo, or other insurance options.

Keep in mind that most of the time, vehicle damages or property accidents tend to have costly repairs. That’s why Umbrella is so handy, it can reduce financial burden. If liability coverage is what you’re looking for, and you’re not interested in having dwelling, car, or motorcycle coverage among others, Personal Liability may be a better fit.

Umbrella Insurance Covers Everything

While Umbrella Insurance offers a wider liability coverage, it does have limitations. It doesn’t cover intentional damages to others or ones coming from business-related activities. It also doesn’t protect you when held responsible for injuring a family member or damaging your assets.

Imagine you break your neighbor’s window after a discussion, the repairs and potential legal claims will have to come out of your pocket. Or let’s say you hit and break your garage door when leaving home with your car, the costs of repairing it won’t be covered with Umbrella Insurance.

Conclusion

In conclusion, Umbrella Insurance can serve as a valuable ally in the event of an unforeseen incident. It’s an extra layer of protection that can keep everyone safer (not only wealthy people) and most importantly, it can be a smart financial choice when protecting your assets, your property, and yourself.

Imagine how frustrating it can be having to suddenly pay a lot of money after you exceeded your coverage limits, only because you rejected a small upgrade in your monthly premium. Umbrella may seem avoidable, but actually, it’s a reliable buffer when needed. The whole idea of having insurance is being safe in the event of an accident, lawsuit, or legal claim. Umbrella helps you get there!