7 Reasons You Need an Umbrella Insurance

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You have insurance to protect your assets in the event of a liability. Still, sometimes it’s not enough to pay for another individual’s injuries, property damage, or financial losses that you are deemed responsible for covering.

That’s where umbrella insurance can help. It covers the financial gap between what your insurance covers and what you actually need to pay.

Some might think that umbrella insurance is unnecessary, but there are situations where you will be happy to have it. Read on to learn seven crucial reasons why you should consider umbrella insurance.

1. Claims can get expensive fast

Umbrella insurance is an extra layer of financial protection. Your home or auto insurance may cover some expenses, but it could be inadequate. It’s not unheard of for claims to go over what your insurance covers.

For example, sometimes people only get the minimum coverage for auto insurance. If you or someone in your family gets in a car accident, it could lead to costly auto repairs and expensive medical bills. This could quickly outpace the auto insurance coverage. Umbrella insurance can provide additional coverage, which means that your entire livelihood isn’t destroyed in one moment.

2. Cover the costs of lawsuits

 In the event that you get sued, personal umbrella insurance can help cover the legal costs of defending yourself. You might think a lawsuit against you is unlikely, but it can occur in situations like your dog biting someone.

If you own a business, you may also want to consider umbrella insurance for lawsuits for workplace accidents or slander. Business insurance may cover these scenarios, but it’s good to ensure adequate coverage.

3. Mitigate financial risks

Umbrella insurance ultimately can help prevent you from paying out-of-pocket for unexpected expenses. You want to protect your assets and life savings. It can be financially devastating if an accident or other unfortunate incident occurs without insurance to cover it.

4. Umbrella insurance is more affordable than you think

Umbrella insurance may sound extra, but it’s most likely within your budget—especially once you consider the cost of not having adequate coverage.

Most umbrella insurance policies begin at $1 million for extra liability coverage. This can cost somewhere between $150-300 annually, but you will want an independent insurance agent near you to help you find the best deal.

Why is umbrella insurance so affordable? The surprising affordability is possible because it’s only used if your primary insurance is depleted.

5. Bring peace of mind during emergencies

If you need to use insurance, there’s a high probability that you are in a stressful situation. Medical bills, lawsuits, and accidents can cause anyone tension about what is happening. But if you have liability insurance combined with umbrella insurance, it could bring you some peace of mind knowing that your financial assets are protected.

6. You own assets that bring an increased chance of liability

Backyard swimming pools and trampolines are fun, but they can also come with an increased risk of liability. If someone was to get injured or a fatal accident occurred, you might get sued. While home insurance would cover some of these expenses, umbrella insurance can help ensure long-term expenses are covered.

You may also want to confirm that your home insurance covers having a swimming pool or trampoline. These are known as “attractive nuisances,” and your home insurance may exclude them from coverage.

7. You own investment property

Investment properties can grow your wealth, but they can quickly drain your financial resources if a renter sues. This may happen in scenarios when a tenant gets injured within the property or loses personal property because of building negligence.

The more investment properties you own, the more likely you will want coverage. Umbrella insurance will give you extra protection to ensure that you can pay for legal expenses.

Find an independent insurance agency to find the best coverage

Ensuring that you have the right amount of insurance coverage can get tricky. At Gambale Insurance Group, we can tailor policies to ensure that you have what you need at the best possible rate. Our Stuart, FL-based independent insurance agents are dedicated to providing high-quality service.

If you would like to discuss your insurance options, please give us a call at 772-223-6007 or request a quote online. We look forward to hearing from you!