Not Just for a Rainy Day – The Great Benefit of Umbrella Insurance

Ever since the pandemic, there has been a drastic change in how people see their insurance needs. They now care about a lot of things – something that the Insurance Information Institute has shed light on. According to their report, life insurance premiums saw a steady growth of over 11% from 2020 to 2021.

But what exactly has driven this surge in the need for insurance? In one word – uncertainty. And that begs the question – is life insurance or property insurance enough?

For example, did you know that over 85 million dogs live in US households and over 4.5 million residents are bitten by dogs every year? Standard insurance can cover these damages only up to a certain limit. In some cases, there can be no coverage for such instances at all.

The plausible solution is to take an additional cover when you run out of liability limits. Let’s take a look at how it can be done and why it should be done in the first place.

What Exactly Is Umbrella Insurance?

Umbrella insurance is a great way to cover the extra expenses and mishaps which don’t come to your mind when you think about insurance. It is exactly what its name suggests — an umbrella that helps you when you are about to caught in a downpour.

If you own a property or an automobile, then the issue of your liability being more than your cover can occur. To cover this extra cost, umbrella insurance can come to the rescue. It is a great way to insure yourself once you reach the upper limit on other coverages but are still in need of more scope of protection.

Here are all the hypothetical situations in which umbrella insurance can save you and your bank account:

  • Injury to neighbors or strangers due to your pet.
  • Accidents to your tenant due to faulty equipment or other parameters.
  • Property or health damage to others and others alone during accidents.

In short, umbrella insurance is a cover that helps you in insuring yourself if someone else is impacted due to your actions. Sometimes emotional damage or hate speech can lead to lawsuits as well. Such cases are also covered under umbrella insurance.

Another interesting aspect of umbrella insurance is that it doesn’t work alone. You need to ensure that this policy is an added cover to your existing ones. Thus, remember that it can’t be bought separately and needs to be clubbed with other policies you have, such as auto or homeowners policy. Such intricacies are easy to miss. Therefore, you should get in touch with experts who can explain every nook and corner of umbrella insurance.

Why Is It Useful to Opt for Umbrella Insurance?

As elucidated above, if you have a property or asset that can harm or damage other people’s health or property, you might need umbrella insurance. In that regard, the intangible results of what umbrella insurance can do are nothing short of amazing.

That being so, apart from everything else umbrella insurance is perfect for someone who:

  • Has a learning driver in the family or someone with a history of negligent driving
  • Has a dog with a special breed that is blacklisted by insurance companies
  • Owns special equipment or areas, such as barbeque, swimming pool, etc., that can cause damage

Here are some of the unseen advantages of getting umbrella insurance on top of your other policies: 

Low Premium, High Benefits

Umbrella insurance can be clubbed with other policies, not to forget their not-so-high premium values. You don’t need to have high-end liabilities or assets to take extra cover in the form of umbrella insurance. The premiums can be as low as a few hundred dollars per month if that is what your valuation comes out to be. This low premium policy can yield high benefits without emptying your pockets.

Added Security Level

While you might have covered yourself perfectly, there is still no harm in being fully secure when it comes to insurance. Umbrella insurance is nothing but an added level of security for any unforeseeable event. It is the perfect amalgamation where insurance meets security. So, if you have accidentally broken someone’s fencing, you might not have to worry about a lawsuit.

Coverage of Miscellaneous Things

The best benefit of getting umbrella insurance is protection against miscellaneous accidents. You can get your dogs and family members insured as well. So, if you have an untrained driver or a playful dog who can create havoc, umbrella insurance can save the day. Some of the policies even cover legal fees.

Looking for the right service provider for proper premium valuation? We at Gonzalez insurance can advise you with the apt policies you need for 360-degree protection against claims and lawsuits. Get in touch with us today to get a customized quote.