For these two reasons, I always have umbrella insurance.

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We have a variety of insurance policies, including home insurance and car insurance. Life insuranceBut in addition to these types of general coverage, I also have another important form of protection. umbrella policy.

It differs from some types of policies, such as: car insurance, the umbrella policy is not mandatory. But despite this, I always carry this kind of insurance with me. And there are two very important reasons for that.

1. Greater asset protection

The biggest reason I chose umbrella insurance is that it adds a lot of protection to my financial assets.

Look, car insurance and homeowners insurance Both provide accountability. However, there are policy limits on how much the insurance company will pay if something goes wrong. If you’re in a car accident, something happens to someone in your pool at home, or something goes wrong, you could be sued for amounts in excess of those limits.

If an accident victim sue for more than the policy limit and wins, this means that they may be held personally responsible for covering the excess loss. We don’t want to miss the chance of that happening.

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This is a concern for those who have a reasonable amount of assets or earn sufficient income. Personal injury lawsuits can lead to property liens, wage garnishments, or many other undesirable consequences.

Unfortunately, no one can predict when an accident will occur. Umbrella policies provide additional protection in this worst-case scenario. Acts as a form of secondary indemnification, so once policy restrictions are applied, Area of ​​responsibility If you have other types of insurance, you will be paid for excess losses.

Our Comprehensive Insurance provides $1 million in coverage on top of the liability coverage provided by our auto and homeowners insurance. With so many added protections, it is highly unlikely that our personal assets will be at risk, even in a disaster scenario.

2. Get the best results for your money

I could have simply added coverage to my home and car insurance, Increased Liability Limits, which would have raised my insurance premiums quite a lot. Umbrella insurance, on the other hand, is much cheaper.

My umbrella insurance company requires that my home insurance and car insurance have a certain amount of liability insurance. I carry the bare minimum they need and I have $1 million in comprehensive insurance. Doing this saves you hundreds of dollars a year compared to raising the limit to $1 million for both home and auto insurance.

Umbrella insurance saves you money and gives you more peace of mind knowing that it covers all types of accidents with your home or car, so it’s very easy to keep this policy active forever. Also, others who want comprehensive asset protection may find this type of coverage makes sense for them as well.

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