Umbrella insurance can be difficult to understand. It’s important to be educated about the different types of coverage available, its uses, pros and cons. In our other articles about umbrella insurance you can find a lot of useful information about this type of insurance. But here we want to put the spotlight on the misunderstandings regarding umbrella insurance and debunk the most common myths about it. It’s time for everyone to see the true benefits of this insurance policy and be well informed about its protection options.
Umbrella Insurance premiums are extremely expensive
Ok let’s talk about what determine the price for umbrella insurance. The cost depends on the risk. The higher the risk the higher the price when it comes to insurance. So, if you want to insure expensive assets and you have young drivers in your family you will have to pay more. But for around $200 per year you can get $1 million worth of coverage. That doesn’t sound expensive at all, does it?
Only wealthy people need it
Wrong! Umbrella insurance add layer of protection above the limits of homeowners, renters and auto policies. That means you will be covered in case of accidents where injuries or damages exceed these limits. And that kind of accidents can happen to anyone. The difference is that wealthy people can afford the out of pocket expenses if they don’t have umbrella insurance and others probably can’t.
It covers jewelry, works of art, electronics, etc.
Wrong again! Umbrella covers the damages you do to others. It doesn’t cover personal property. For example, if you hit someone with your car, or damage something expensive with your boat, or someone get injured in your house. It can also protect you against lawsuits that can occur after liability claims. If you want to insure your personal items you need homeowners or renters insurance.
It can take the place of home, auto or boat liability coverage
It is important to know that you can’t purchase umbrella insurance alone. It can only work as an additional liability if you already have liability coverage from a home, auto or boat insurance policy. As we said above it will increase the limits of your current liability coverage in order to provide more protection for you and your family.
With clearing these misunderstandings about umbrella insurance we hope you will be more confident talking about it and see the benefits of it. Don’t forget that umbrella insurance is suitable for everyone, especially for people who own home, car, have kids and pets, travel abroad, rent or own recreational vehicle, have regular income, assets, or retirement savings to protect. We can offer higher limits for high net worth individuals and families.