What Is an Umbrella Policy and Why Would I Need One? 

An umbrella policy is not a physical umbrella that protects you from the rain but rather a metaphorical umbrella that can financially shield your assets from potential storms. So what exactly is an umbrella policy—and why would you need one?

What Is Umbrella Insurance?

An umbrella policy extends your liability insurance coverage beyond what your standard home, auto or watercraft policies offer. It’s tailored to shield you from significant claims and legal actions by supplying extra liability protection, often in increments of $1 million.

Picture it as an extra layer of financial protection that kicks in when your primary insurance coverage is exhausted.

What Can Umbrella Insurance Cover?

Umbrella insurance can provide the following:

• Protection against lawsuits—In today’s litigious society, lawsuits can arise from various situations, such as a serious car accident or an accident on your property. If you’re found liable for damages that exceed the limits of your primary insurance policies, your personal assets, such as savings, investments and even future earnings, could be at risk. An umbrella policy steps in to bridge this gap and protect your hard-earned assets from being seized in the event of a lawsuit.
• Coverage for unforeseen events—Life is unpredictable, and accidents can happen when you least expect them. Whether it’s a slip-and-fall incident at your home or a multi-vehicle pileup on the highway, the financial ramifications of such events can be substantial.
• Protection for your future earnings—Without adequate liability coverage, a lawsuit could not only wipe out your current assets but also jeopardize your future earnings. Your wages could be garnished for years to come to satisfy a judgment against you. By investing in an umbrella policy, you’re safeguarding your financial future and helping ensure that your hard work and aspirations remain intact.
• Affordable coverage—Despite the extensive coverage it offers, an umbrella policy is surprisingly affordable. Considering the potentially devastating financial consequences of a lawsuit, the relatively low cost of an umbrella policy makes it a wise investment in your financial security.
• Peace of mind—An umbrella policy provides peace of mind. Knowing you have an extra layer of protection in place allows you to navigate life’s uncertainties with confidence.

Umbrella Insurance in Edinburg, TX

By investing in an umbrella policy, you’re safeguarding your assets and securing peace of mind for you and your loved ones. Contact Family Affordable Insurance to discuss umbrella insurance. We can help you determine if it is the right option for your situation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.