If you don’t work in the insurance field, it can quickly become overwhelming to look for insurance policies. Which ones do you need? How much coverage is enough? It’s important to take the time to educate yourself about every facet of a policy before you purchase it. With that in mind, we’re going to talk about umbrella insurance policies today, and the two myths we hear most often about it.
Let’s start with defining what exactly umbrella insurance is. Umbrella insurance is essentially extra-liability protection. Umbrella insurance policies are designed to protect you, and your assets, from major claims and lawsuits. These umbrella policies provide additional liability coverage on top of other policies like homeowners, auto, and boating. Now that we know what umbrella insurance is, let’s take a closer look at the two myths we see most often associated with these types of policies.
Umbrella Policies Are Just Too Expensive
Honestly, it’s surprising that so many people are surprised at how inexpensive an umbrella policy can be. Of course, the actual cost is based on myriad of personal risk factors like number of homes, cars, recreational vehicles, etc. However, on average, most people can add an additional $1 million dollars of liability coverage under an umbrella policy for under $20 a month. In general, these policies rarely exceed a total cost of $200 per year if you aren’t taking out a policy that covers more than $1 million.
Umbrella Policies Are Only For Wealthy People
This would be true if only wealthy people were sued. Unfortunately, the reality in the United States is that anyone can be sued! Making umbrella insurance just as important for low and middle-income families as it is for wealthy ones, if not more so! Remember, a wealthy individual may have the assets to cover the expenses of a lawsuit out of pocket, while most lower-income individuals cannot. If you are considering an umbrella policy, ask yourself this question: does the value of my assets exceed my current liability limits. If it does, you should consider an umbrella policy.
Yes, it is true that umbrella insurance is not for everyone, but it is for far more people than you think! Take the time to do your research, and consider the value of your assets, vs the value of your coverage. If you decide that maybe you should be looking into an umbrella insurance policy, then you need to consult with an insurance professional! The folks at TGS Insurance are experts in umbrella policies and are always happy to help.