Protecting your family, your friends who come over, your own home’s integrity, and all of your possessions and assets are the top priorities of every homeowner. This is why it’s important to be covered with a good insurance plan. It’s typical for most insurance plans have limitations on what is and is not covered. So, what happens if you end up in a situation where your normal insurance coverage isn’t enough to take care of the repairs, replacements, or expenses that you are facing?
That’s when it can be good to have an additional personal umbrella insurance policy to help make sure you are covered, should such events arise. Many people have little to no understanding of what an umbrella insurance policy offers. In fact, only a handful of homeowners understand the basics of umbrella policies and what they can do for them. Here at Snyder Insurance, we want to help correct this dilemma. We’re here to help customers like you be as informed as possible, when it comes to your insurance coverage needs.
Understanding What An Umbrella Insurance Policy Offers
A personal umbrella policy is the name given to a specially designed type of insurance that aims at providing homeowners with liability coverage that goes over and above what the basic automobile or homeowners insurance policy would cover. So, if your liability coverage or homeowner’s insurance doesn’t cover expenses involved with an accident or damage to your home, a personal umbrella insurance policy will be there to kick in right where the basic coverage left you hanging.
For example: if you have $15K in damage done to your home, and your basic homeowners policy will cover only$10k of that, then your umbrella policy will pick up the remainder and take care of the payments.
Personal Umbrella Insurance Policy In Action
Suppose you’re in an auto accident and the limit of your insurance coverage is not enough to cover resulting medical bills? If the other driver is severely injured, and the accident was your fault, you can be held responsible for the driver’s medical bills and for the damages done to his or her vehicle. And if the driver sues you, personal assets such as your home and savings can be at risk. If it is determined that you’re at fault for the other driver missing work due to the accident, she or he can sue you for reimbursement of wages lost.
In a situation like this it’s not unusual for costs to climb to one million dollars or more, by the time all the expenses are calculated. Your automobile policy may cover you up to $250,000, but how are you going to get the other $750,000 to make up the remaining owed? A personal umbrella policy will help protect you in a situation like this, in which your standard insurance policy reaches its limit.
It is this type of insurance coverage that protects your personal assets – such as home, savings, and other personal possessions – from being taken to pay for these kinds of catastrophes. Many find the additional cost of the second insurance plan is well worth the peace of mind that comes with it. This is why knowing what an umbrella insurance policy offers, and understanding the basics of umbrella policies, is so important today.
Knowing Your Personal Umbrella Insurance Policy Options
In most cases you can get a personal umbrella policy quite easily. They are commonly issued in million-dollar increments, from $1 to $5 million. This gives you a range of options when it comes to estimating what you might be responsible for in the event of a home or auto accident. While an umbrella policy is not legally required by any state or federal regulations, it is a good thing to get. If you have any questions about the basics of umbrella policies, a Snyder agent can help you get the answers you need, so you can decide whether having additional liability coverage is the right choice for you and your family. Contact Snyder Insurance today to learn more about what an umbrella insurance policy offers!