Many people, especially those who live in areas where it doesn't rain that often, don't even consider the purchase of an umbrella. Believing it will just take up space and not be worth the investment just to discover that they don't have the protection that they need on the rainiest of days. The same can be said of the purchase of umbrella insurance. Not even considering the purchase of umbrella insurance is the same as not having an umbrella on a really rainy day. Here's why you should have umbrella insurance included on your insurance policy:
Protects You in the Event Damages Exceed Liability Limit:
Most homeowners insurance policies include a limit on the amount of liability that is paid on claims. However, many times, it's discovered that the damages exceed this limit, in which homeowners then have to pay out of pocket. This can be extremely damaging financially. With umbrella insurance, this is avoided because it provides extra coverage outside of the liability limit. This is something to consider if you often have guests at your home or workers. If someone is injured on your property, medical bills can go above the liability limit really quickly, which is where the umbrella insurance is going to kick in.
The Need is Not as Rare as You Might Think:
One of the main reasons people do not purchase an umbrella policy is because they feel that the need for it is extremely rare. This, however, is simply not the case. The need for liability can occur at any moment and situations that lead to it can be unexpected. Even if your kids invite their friends over, it becomes an issue if one of their friends is injured. In fact, even if someone trespasses, you can still be held responsible if they injure themselves on your property.
Discount Could Pay for the Additional Cost:
Since umbrella insurance provides extra protection, homeowners insurance companies actually prefer that their customers purchase it. This makes the home less of a liability, which is why homeowners insurance companies provide incentives, such as discounts when you purchase an umbrella policy. In some cases, the discount may end up covering the cost of adding the umbrella policy in the first place.
When you understand how umbrella policies work, you can see that it's more than just an add-on to your insurance policy. You should begin to view this as a necessity rather than something that is not needed now or in the future. Contact an agency, like Bishop Insurance Agency, for more help.