Most people think that umbrella insurance is only for wealthy people, but this is a myth. With the increasing amount of lawsuits today, umbrella insurance is a must for all people. The problem is that many people do not buy umbrella insurance either because they do not see it as necessary, or they do not know what it is. After reading the following, you will fully understand what umbrella insurance is, and why it is important.
What is Umbrella Insurance?
Umbrella insurance is an extra layer of liability insurance. It goes beyond auto and home insurance and covers other important assets. This kind of insurance is provided in amounts of $1,000,000 increments. Some examples of things it covers are:
- Bodily injury liability
- Property damage liability
- Owners of rental units
- Lawsuits if you are sued
If you are at fault for any of the above examples, your bank account could be impacted significantly. It is important to realize that your coverage currently may cover some of these things, but there is a limit. For example, if you get in a car accident and the injuries you cause to the other driver cost $500,000, but your insurance currently only covers $300,000 in bodily injury, you will be responsible for paying the other $200,000. This is not a situation anyone wants to be involved in.
Why You Need Umbrella Insurance
As illustrated above, if you do not have umbrella insurance, your finances could be negatively impacted. It is important to remember that you never know what could happen, and in the end, it is better to be safe than sorry. If you injure someone in an accident because of negligence, you are potentially responsible for medical bills, rehabilitative therapy, as well as lost wages. This can add up to an enormous amount, and you never know what the judge will require you to pay. The risk of having to pay a large amount of money, and the list of what an umbrella policy will cover, should be enough good reasons to why you need umbrella insurance. Another plus to umbrella insurance is that for an extra $1,000,000 coverage it is not expensive.
Umbrella insurance is important for all people because accidents can happen to anyone. It is sometimes true that wealthy people might have a greater risk of having to pay more, but not always. If you are at fault for an accident, it is almost guaranteed that you will have to pay some money out of pocket. And the worse the accident, the more you will have to pay. Be covered from ruin, and do not be left in the dark. To learn more about our competitive rates on umbrella insurance contact one of our agents at T.J. Woods Insurance Agency in Worcester, Massachusetts.
