Personal Umbrella Insurance

Should You Consider Personal Umbrella Insurance?
 

Many consumers believe that with home, health, auto, and life insurance, they don’t need personal umbrella insurance. However, in situations where you’re at fault in an accident, your existing coverage may fall short.

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Personal umbrella insurance provides that crucial backup protection for the unthinkable. In today's litigious society, having umbrella insurance is becoming almost essential for complete peace of mind.

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But how do you know if you truly need personal umbrella coverage? The best approach is to do the math and crunch the numbers:
 

• Calculate your assets:
  Review the value of your assets, including your home, bank account balance, stocks, bonds, 401k, and other investments.

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• Review your current liability coverage:
  Take a look at your home and vehicle insurance policies to see the maximum liability coverage they provide.

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• Make a comparison between your current coverage and your total assets:
  You want to ensure that the value of your assets doesn’t exceed the amount of coverage you currently have. If it does, it may be time to consider umbrella coverage to fill the gap.

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If your current policies provide you with less coverage than your current asset base you should consider adding personal umbrella.

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What Does Personal Umbrella Insurance Cover?

 

It’s important to understand what personal umbrella coverage includes if you’ve determined that you are in a vulnerable position:
 

• Personal claims:
  Protection against claims such as libel, slander, and unlawful detention.

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• Defense costs:
  Coverage for the legal costs you may incur if a liability claim is brought against you, including lawyer fees.

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• Additional liability coverage:
  Extra protection for your home, automobile, watercraft, or other personal vehicles, ensuring that you’re covered beyond your existing policies.

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If you still have questions and may not be completely sure if a personal umbrella policy is right for you, contact the Eternity Insurance Agency for answers.