In terms of insurance policies for the average person who doesn’t own a business, most people have auto insurance, home insurance, and maybe a life insurance policy. However, a type of insurance most people don’t really consider purchasing is personal umbrella coverage. However, it can be very useful.
What Is Personal Umbrella Coverage?
Personal umbrella coverage is a type of insurance coverage that is designed to act as an overarching coverage that can kick in when your other insurance policies’ limits aren’t high enough to cover all the costs associated with a particular incident. It can also help if you run into issues that don’t fall under the coverage of your other insurance policies.
What Is a Situation Where Umbrella Coverage Could Help?
Personal umbrella coverage can help you in many situations where your other insurance policies fail to provide you with the coverage you need. For example, imagine a scenario where you get into a particularly catastrophic car accident that results in extremely high legal costs, and repair costs; all of which you end up being liable for. With just your typical auto insurance, you’d be on the hook for any of the expenses that fall outside of your limits. However, with umbrella coverage, you’d be taken care of and able to avoid having to pay these expenses out of pocket.
Sometimes, your insurance limits aren’t high enough to cover all the costs associated with an incident. Umbrella coverage can help.