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Umbrella Insurance additional coverage

Knowing why you need a home or car insurance policy is a no-brainer. But what about an umbrella insurance Raleigh policy? Not many people know about or understand this type of insurance. If you’re one of those people, you’re in the right place.

Umbrella insurance falls under personal liability insurance. This kind of insurance becomes crucial when your home or car insurance is not enough to cover liability claims against you. In short, it provides excess liability insurance or additional coverage beyond your other insurance policies. Many consider this kind of insurance as protection for their assets because if your current policies can’t provide coverage, you might lose your possessions trying to settle lawsuits.

Umbrella Insurance additional coverage

Specifically, an umbrella insurance Raleigh policy has the following benefits:

  • It is an affordable way of gaining extra liability coverage to protect you and your assets. Though rare, losing a lawsuit where the total cost of damages exceeds your home insurance or car insurance coverage is not impossible. In this case, umbrella insurance can cover the additional liability costs. Without it, you might lose your savings and assets to keep up with the costs of damages or injuries.
  • Your family members will also receive protection. Of course, your child or spouse can get a lawsuit for causing harm to others. When this happens, your umbrella insurance will cover the damages over what your home or car insurance already covered.
  • Umbrella insurance can also provide coverage against libel, slander, and false imprisonment – claims that your home or auto insurance doesn’t cover.
  • For landlords, umbrella insurance can cover liability claims not included in home insurance and renter policy.
  • Your home or car does not need to be involved in an accident or unexpected situation for you to file a claim. Additionally, it can be used even when you’re out of the country.

Umbrella insurance Raleigh policy is quite beneficial for people with higher net worth. But, of course, with more significant assets come more significant losses. So, for you to protect what you have, you also need to have additional coverage. However, policyholders must understand that umbrella insurance does not cover their property or possessions. It simply provides protection from liabilities made against them.

Do you need umbrella insurance? If you’re undecided, go with the general rule that if the total value of your assets exceeds your home or car insurance limits, then you most likely need it. Or you can simply ask yourself if you are at risk of being sued. If yes, umbrella insurance is undoubtedly for you.

For more information about insurance, please read the following posts: Builder’s Risk Insurance, and Business Insurance.