Do You Need an Umbrella Policy?

An umbrella policy protects against the possibility of devastating financial loss due to unforeseen events.

It picks up where your auto and homeowners insurance policies end. The high deductible in an umbrella policy is designed to be met by your other policies. An umbrella policy protects your existing personal assets and future personal assets, such as your wages and inheritance, against the cost of losing a lawsuit over a car accident or an incident on your property. If this lawsuit was to be lost, you would have to pay the winning party for expenses such as medical bills, lost wages, and rehabilitation which can quickly become very expensive.

Coverage in an umbrella policy extends beyond what is provided by your homeowners and auto insurance policies. It typically provides $1 million to $5 million of additional coverage, and it is possible to get more coverage if you have more assets to protect. Legal expenses are covered on top of the policy amount, as well as reimbursed wages if you must take days away from work to appear in court.

When taking out an insurance policy, it is important to note what it doesn’t cover. An umbrella policy is a form of personal line insurance, it won’t protect you from lawsuits related to a business you own. This includes babysitting or child care. It may not cover all vehicles such as recreational motor vehicles, farm tractors or trailers, along with activities such as drag racing. If you commit a crime, such as driving under the influence, you are forced to pay restitution. Be sure to know what your coverage includes and doesn’t!

If you always take public transportation and don’t own a property, you are much less likely to need an umbrella policy. However, if you drive a long commute, drive in rush hour, own a dog, frequently have guests over at your house, or if you have a swimming pool, you should acquire an umbrella insurance policy.

It is impossible to predict whether you might lose a lawsuit resulting from a car accident or an accident on your property, which is why it is so important to protect yourself against this risk. For insurance coverage in Fresno, California, visit McCarty Insurance Agency. We provide each individual with the correct umbrella insurance coverage! Contact us today!