Do You Need an Umbrella Insurance Policy Today?

Owning an asset offers financial rewards, but if something goes wrong, the buck stops with you. The loose stair that you meant to fix or the dog that snapped at a passing cyclist fall within your responsibility. While your insurance may help pay for the damages others sustain, it may not be enough, so an umbrella insurance policy may help cover that.

wood house siding with window and stairs

Umbrella Policies Start Where Other Insurance Products End

If your insurance covers an incident, an umbrella policy may cover damages that go beyond its scope. For example, if someone slips and falls on your loose stair, your insurance may pay for the individual’s medical care and associated expenses. But if a court also finds you negligent and assesses further damages such as pain and suffering, it is possible to go beyond the dollar amount your insurance allows. An umbrella policy could pick up at this point and may cover the rest.

What Happens if There is No Umbrella?

Any damages that go beyond the insurance’s dollar limit come out of your pocket. This may force you to sell your assets, such as your home or vacation property. It may also reduce your future earning power by attaching unearned wages and using them to satisfy any judgment. This process puts you in a serious financial bind that can take years – if not decades – to overcome.

So, do you need an umbrella insurance policy? If you own assets but rely heavily on your insurance to mitigate any future losses, then taking out added liability protection can protect you. Of course, each person’s situation is different. Contact us today to discuss liability coverage with a Moyer & Moyer Insurance Agency professional!

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