When it comes to insurance, customers often opt for the minimum coverage required by their lenders, landlords, or the law. However, it's a smart decision to talk to your insurance agent about an umbrella policy. In the event of a disaster, your existing policy may not cover all the costs, and you need to be prepared for whatever life brings your way. Take a look at just a few positive aspects of an umbrella policy below.  

The Benefits of a Personal Umbrella Policy

1. Additional Financial Protection

Think of an umbrella policy as insurance for your insurance. Many policies with high coverage also mean higher premiums, and people often choose to go with plans with less coverage to keep their rates lower. However, in the event of a serious accident, it's possible that your insurance policy may not cover all of the costs. For instance, if someone is injured on your property and his or her medical bills total $500,000 but your homeowners insurance maxes out at $350,000, you could end up being responsible for the rest. An umbrella policy would take effect to cover what your original plan doesn't.

2. Legal Safeguard

Unfortunately, if you are the cause of an accident and you have insufficient insurance to cover the cost, complainants can sue you for the difference. If you don't have liquid assets to cover the balance, the court system might place liens on your property—with an umbrella policy, you can protect your assets and avoid significant financial distress.

3. Affordability

Many people think that they can't afford additional homeowners insurance or auto insurance. However, for a nominal amount each year, you can increase your coverage in case of an unexpected accident with the addition of an umbrella policy. This additional insurance is significantly more affordable than expensive court costs or liens on your property. Ask your insurance agent about rates in your area. 

If you’re interested in obtaining more information about a personal umbrella policy, it's important to find an insurance agency that works hard for their customers. Siemers Insurance Agency, based in Cincinnati but also licensed in Florida, Indiana, Kentucky, North Carolina, and South Carolina, offers reliable coverage at affordable rates. Their professional agents work with a variety of insurers to find you the best prices possible. Get a quote by calling (513) 469-8877 today or visiting them online.