You have liability insurance to protect you from financial disaster if you cause damage or harm to another person or their property. Sometimes, the damage goes far beyond what your insurance covers. To make sure you’re completely covered, you may want to have umbrella insurance.
What is Umbrella Insurance
Also called personal liability insurance, umbrella insurance offers financial protection above and beyond your primary insurance policy. If you’re sued for an amount above what your insurance will cover, umbrella insurance pays for the remainder. Have your insurance specialist Poulsbo WA set you up with a policy to protect you from financial ruin due to an accident.
What Does Umbrella Insurance Cover
Umbrella insurance is used to cover other people’s injuries or property damage, lawsuits that involve slander and your legal defense costs. It will not cover damage to your personal belongings, your injury costs, criminal acts or liability from a contract.
Do You Need Umbrella Insurance
If you have a high net worth or a high probability of being sued, you may want to have this type of insurance. Some people have a higher chance of entering into problems due to the lifestyle they have or the activities they pursue. Consider having an umbrella insurance policy if you own a home, are a landlord, have an inexperienced driver in the home, serve on a nonprofit board, frequently post reviews about businesses or products or are a public figure.
How Much Do You Need
The amount of umbrella insurance should be equal to your net worth and can be purchased through your insurance company. Make sure you have the minimum liability amounts set for your primary insurance to secure a new policy.
Having umbrella insurance isn’t necessary for everyone, but it can give you peace of mind knowing your assets are completely covered.