Modern life is predicated on insurance. Your homes, cars, expensive weekend toys, and body are all insured to prevent an accident from ruining you financially. However, in some cases, basic liability insurance might not provide sufficient protection. Here are a few reasons why you might consider adding an umbrella insurance policy.
If You Own Rental Properties
Investing in rental properties can deliver sizable returns. However, a rental property can also expose you to liabilities that extend beyond those covered in standard policies.
- Short-Term Rentals: one of the biggest trends with property investors is converting conventional rentals into short-term rentals. Although this option can be perfect in the right market, your homeowner's insurance might not provide the liability coverage you need. For instance, if your short term rental is vandalized or damaged by renters that you can't track down and/or who lack sufficient insurance or assets, your insurance coverage might not sufficiently repair the property. Additionally, what happens if a renter is injured on your property? Some or all of the liability for the accident might fall to you personally.
- Income Dependence: if the majority of your income depends on your rental properties, you should strongly consider taking out an umbrella policy. Adding additional liability coverage can help you secure the income you depend on even if the property is significantly damaged and/or can't be rented for an extended period.
If You're a Coach, Teacher, or Volunteer
Devoting your time, energy, and/or career to helping others can be rewarding. However, these types of ventures can also expose you to all sorts of liability issues.
- Teachers: if you're teaching in a state without a strong teachers union and/or you choose not to become a member of your union, you are likely without the liability coverage needed to defend yourself if you are accused of a serious crime on the job. From hiring a lawyer to weathering being without pay for an extended period, you need insurance that will provide you with support if you need it on the job.
- Coaches/volunteers: what happens if the athletes you're coaching are hurt in a game? In some instances, parents might attempt to hold you liable for their child's injury and/or subsequent medical bills. The same is true of volunteers helping with building projects. What happens if you're hurt while volunteering? After all, didn't you assume liability when you volunteered your time? Umbrella insurance is there for all the eventualities you can't or at least might not want to imagine.
Contact a resource like Stoneham Insurance in order to learn more.