How to Maximize Your Umbrella Insurance

Insurance Companies Raleigh NC. Progressive Insurance Millbrook Rd Raleigh NC.

Insurance Companies Raleigh NC. Progressive Insurance Millbrook Rd Raleigh NC.

Insurance Companies Raleigh NC. Progressive Insurance Millbrook Rd Raleigh NC

Is it worth securing umbrella insurance? Sales agents typically encounter this question from their customers. Indeed, you may have heard it in passing and not fully understand what it is.

Simply put, umbrella insurance kicks in right after your other liability coverages max out. So, for instance, if your policy only pays claims up to $100,000 and your hospitalization costs are significantly more than that, the umbrella insurance provides fail-safe protection that you can enjoy.

Best Umbrella Insurance Raleigh

There’s a reason why this type of insurance is also called “asset protection.” It’s because you don’t need to risk your belongings or valuables to cover exorbitant expenses.

Why More People Don’t Have Umbrella Insurance

According to a Chicago Tribune article, only 1 in 10 people have umbrella insurance. Most people may think getting one is not at all that necessary.

One reason why people are wary of umbrella insurance is the misconception that it’s only for the rich. However, keep in mind that hindsight is always 20/20. Most seem to think that tragedy only happens to other people, and it’s already too late when they fall prey to their own complacency.

Best Umbrella Insurance Raleigh

Take this scenario, for instance:

You are a small pop-and-mom store, and a kid playing inside your shop tripped and broke his arm. The angry parents, who should have been watching over the boy in the first place, decide to haul you to court for damages.

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Where do you get the money to pay for legal fees? Millionaires or billionaires are not the typical targets of civil lawsuits since they have the money to drag the trial to eternity. You are.

Umbrella Insurance Coverage

Umbrella insurance covers a wide range of claims because it includes all policies. You will enjoy protection if the following scenarios occur:

  • If your dog bites someone or another pet;
  • If you run over someone;
  • If you damage property when you crash into a house, fence, or another car;
  • If you injure somebody accidentally;
  • If your child gets sued for cyber libel;
  • If you are a business owner or board chair and face a lawsuit for a company-related issue; or
  • If you are driving outside the country and get involved in an accident.

However, the policy will not cover the following:

  • If you commit a criminal act;
  • If you intentionally hurt or injure someone;
  • If you renege on a contract;
  • If you violate an agreement with a business party;
  • If you infect someone with an infectious or fatal disease; or
  • If the damages result from terrorism.

Maximizing Your Umbrella Insurance

It’s a good rule of thumb to secure umbrella insurance that will cover the amount equal to your net worth.

However, maximizing its value is always a good idea if you are taking on additional policy. Here are some ways to do it:

Understand what your policy covers

Don’t simply leave everything to your insurance company. Instead, call your agent and go over your policy once again. Present some real-life scenarios that may apply to you to gauge how much protection you have.

Read the details

If you have a lawyer on retainer or some lawyer friends and relatives, let them comb through the fine print. You probably heard all the horror stories concerning loopholes that give insurance companies an escape plan to avoid paying a claim. The lawyer should eliminate the impression that umbrella insurance is just another money-making scheme.

Ensure you get the right coverage

Umbrella insurance is not all-inclusive. For instance, if you are an entrepreneur, you must look for the phrase “business pursuits.” Different professions also require specific coverages. For example, a doctor needs professional liability in the face of a malpractice lawsuit. A publisher may need protection against libel or cyber libel. A laundry shop owner may require additional security against theft lawsuits.

Get as much protection as you can

One misconception about umbrella insurance is that it’s expensive. Nothing can be further from the truth. In fact, you can get as much as $1 million coverage for as little as $200-$300 annually. While thinking of your net worth, you must also consider future income loss if a potential lawsuit severely interrupts your life or business. In addition, with today’s cancel culture, your reputation may be irreparable due to a damaging social media post, even if the incident in question is not your fault.

Protect Yourself and Your Assets with Umbrella Insurance

Umbrella insurance is an additional investment, although some may argue it’s an expense. The sentiment is understandable, especially if people have been paying for years without applying for a single claim.

However, not using your umbrella insurance is a blessing. It only means that you have made it this far unscathed.

Make sure to talk to an agent to determine what type of umbrella insurance you need. You don’t want to risk destroying your lifetime’s worth over a single unexpected event.

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