The amount of available insurance can feel exhausting, from auto to home to life to a disability, but one that is often overlooked and yet is incredibly important is umbrella insurance. Included with most of the insurance mentioned above policies is liability coverage that protects you from being responsible for the legal fees, medical bills, and other costs associated with a third party being injured in an accident you caused. Also known as excess liability insurance, umbrella insurance kicks in when your existing liability coverage has been exhausted. Therefore, think of umbrella insurance as a safety blanket that helps avoid financial ruin if an accident happens. If you do not have an umbrella insurance policy and your existing liability coverage is used, you’ll be on the hook for any overages, which could lead to financial ruin.
While umbrella insurance is useful for anyone, it is crucial for individuals that meet any of the following conditions:
- You have significant net worth or assets that could be vulnerable if sued.
- You own multiple properties.
- You frequently travel abroad or enjoy high-risk activities.
- You are a public figure and need to protect yourself from defamation lawsuits or could be an easy target to be sued.
- You own a pool, treehouse, trampoline, ATV, dog, or other similar items frequently used and could injure a visitor.
If you meet any of these statements, the next step is determining how much liability coverage you need. Add your current liability coverage together and subtract all your assets at risk. If the number is negative, that figure is how much umbrella insurance coverage you should buy.
To learn more about umbrella insurance, give Bingham Insurance Group in Braselton, GA call today – we’d be happy to help!