In a previous post, we talked about umbrella insurance in general. But who needs umbrella insurance exactly? In today’s article, we take a closer look at this type of coverage that can be a game changer for almost anyone.
Umbrella Insurance in Action
Just to recap: umbrella insurance is a coverage that steps in when a claim exceeds the limits of your existing auto or home insurance policy.
A real scenario will help you understand why umbrella insurance is so useful. For example, let’s say that a driver causes an accident that involves several vehicles. Needless to say, the costs or repairing or replacing all those cars plus the medical bills of the occupants can easily exceed the limits of most auto insurance policies.
If the driver doesn’t have umbrella insurance, then the expenses can deplete his savings and even result in garnished wages. In other words, a certain amount of money will be taken from his paycheck until he pays his debt. Not a pretty prospect.
On the other hand, if the driver in our example has umbrella insurance, he can breathe a sigh of relief. The extra layer of protection provided by the insurance policy will kick in and cover the outstanding expenses, up to the limits listed in his policy.
Who Needs Umbrella Insurance?
Think about the driver in the example above. Everyone is exposed to similar risks that can exceed the limits of their primary policy.
Maybe your dog causes serious harm to someone. Or perhaps a guest falls while on your property and sustains injuries that require hospitalization. These are everyday incidents that can strain the limits of your coverage.
So, the answer to the question “Who needs umbrella insurance?” is that everyone should at least consider this type of coverage.
We used cars as an example because is one of the most common ways to take advantage of umbrella insurance. But you can take out an umbrella policy to supplement the coverage of almost any type of insurance, including homeowners, auto, boat, and motorcycle insurance.
If you are interested in umbrella insurance, remember that some restrictions may apply. For example, in some cases you may be required to carry a certain level of coverage if you want to take out an umbrella policy.
To learn more, contact the experts at RF1 Insurance Services. We’ll be happy to answer your questions and help you find the umbrella coverage that works for you.
RF1 Insurance Services: Umbrella Insurance in Southern California
Looking for Umbrella Insurance in Ontario, California, or anywhere in the Golden State? At RF1 Insurance we work with some of the world’s most trusted insurance companies, including Safeco, Stillwater, National General Premier, Aegis, and the California Fair Plan.