Why Umbrella Insurance is Important

Aug 5, 2022

In life, anything can happen. Obviously, you are well aware of this. But have you given all the dangers you currently confront any thought? distracted motorists people who reveal others’ dirty laundry on social media. Daily dangers include those associated with teen drivers, carpools, pets, gatherings, and occasionally even your maid.

Additionally, our society is more litigious than ever, and lawsuits are frequent. Therefore, the true question is not whether an unexpected event will occur but rather when and how bad it will be.

Many individuals only have $100,000 in liability insurance. It is as much money as it sounds to be. However, when dealing with significant harm, particularly when numerous parties are involved, $100,000 doesn’t go very far when you take into account medical expenses, pain and suffering, lost wages, emotional distress, lingering pain and scarring, and other factors.

What happens if someone is wounded and you don’t have enough insurance? That’s a terrible thought.

Umbrella insurance is crucial because of this.

Like many others, you probably haven’t heard of umbrella insurance. Simply, it extends your existing insurance coverage by an additional $1 million or more. It increases your sense of well-being and shields you from the unforeseen surprises of life.

Being sued like that doesn’t require you to be rich.

Not just higher earners have access to umbrella coverage. Everyone should use it, especially if you:  

  • Own a property and earn a steady living
  • Protecting retirement funds and other assets
  • In your home, host guests.
  • You have a teen driver
  • Allow your teen to babysit or host sleepovers, kids’ parties, or a carpool of kids.
  • Join your HOA or serve on a volunteer board.
  • Social media usage
  • Possess rental homes
  • Traveling abroad.
  • Possess a golf cart, snowmobile, ATV, or other type of “toy”
  • Have animals
  • Possess firearms or other leisurely weapons

How many of these describe you? Each one raises your liability and necessitates a risk analysis by an impartial agent. You can better safeguard your family and yourself by being aware of your risk.

What happens if a loss isn’t covered by your home or car insurance?

Were you aware that your home and car insurance doesn’t cover all potential liabilities?

Take into account these two fictitious situations:

You overhear some intriguing rumor about one of your neighbors. At a neighborhood BBQ, you share it with your best friends and swear them to silence. Naturally, as gossip frequently does, it comes back to this individual. Although many homeowner’s insurance policies don’t cover slander, you could be sued for it.

Or,

You have the funds saved up for a romantic getaway to Europe. You opt to rent a car and explore all the key places on your own schedule rather than going on a tour. Unfortunately, your auto coverage does not protect you while you are traveling outside of the United States or Canada and you cause a collision because you forgot to drive on the other side of the road, injuring someone.

In all of these fictitious instances, a Safeco umbrella policy might have offered protection for you despite the absence of coverage from the primary homeowner’s or auto insurance (subject to policy limitations and conditions, of course). Additionally, it can assist with the legal fees.

The bottom line: If the unexpected occurs, a personal umbrella policy may be able to shield you from a range of dangers.

You might be surprised at how inexpensive peace of mind is.

Without an umbrella policy, if you are found liable for a claim, your savings, possessions, and even future income could be at stake. Umbrella coverage is an economical method to plan for the unforeseen.