Whatever insurance policy you rely on, in situations where you are liable for a claim larger than the coverage you were given, umbrella insurance can help to offset that extra cost. Read on as we elaborate on what umbrella insurance is all about.
What Does Umbrella Insurance Mean?
Umbrella insurance can be described as a low-cost measure to obtain significant extra liability coverage. In essence, this policy is a form of personal liability insurance that covers claims that go beyond the coverage offered by other insurance policies like homeowners, rentals, or condo insurance. As a counter for excessive losses stemming from any potential lawsuits, umbrella insurance offers broad coverage, but since it is a personal liability policy, it will not cover liability in business settings or any harm to your own property or family members who are covered under the umbrella.
Why Is Umbrella Insurance Important?
Every aspect of your life might already be covered by insurance policies, but if you are found responsible for causing damage or harm to others, you might be subject to a lawsuit. If you lose the suit, you may be forced to pay damages higher than the coverage of your current insurance policies. Umbrella insurance assures one that should this happen, they will not need to burn their savings. For example, you may have caused a 10-car accident, and your insurance damage coverage isn’t high enough to replace all 10 vehicles or pay for the hospital bills for all those who were injured by it. It is an extreme example, but it illustrates how typical insurance policies may not be enough to fully insure an individual. In such cases, you can rely on umbrella insurance.
When Do You Need Umbrella Insurance?
If you own a swimming pool or trampoline, or you own an aggressive dog breed, your daily life puts you at greater risk of a lawsuit, which is primarily what umbrella insurance covers. You never know if someone might drown in your pool or get attacked by your dog. It could also apply if you are a sports coach, or you enjoy hunting. You never know if a parent could sue you for injuries to a child during training, or if you shot a pet by accident. If your everyday life involves the risk of lawsuits, umbrella insurance is something you should consider.
In the event that you have significant assets that you could lose in a lawsuit, umbrella insurance can also help to guard you against extreme losses.
How Long does it Take to Get Umbrella Insurance?
Depending on whether you have all the necessary information on hand when you approach an insurance agent, finalizing umbrella insurance should not take too long.
Why Choose K&N Brokerage?
K&N Brokerage is a partner of the Independent Insurance Agents & Brokers of America. We strive to establish close and meaningful relationships with our customers and to provide them with timely and effective services, letting them explore the policies they need.
If you have any questions about K&N Brokerage’s umbrella insurance specialists, feel free to call us at 718-739-9090 or send an email to [email protected]