With the prevalence of lawsuits today, you may wonder if your insurance policy covers the cost if you are ever sued. While homeowners and auto insurance offer some protection, umbrella insurance provides even more liability coverage. The team at Tower Community Insurance, in Scottsboro, AL, discusses who needs an umbrella policy below.
What Is Umbrella Insurance & What Does It Cover?
Umbrella insurance provides you with extra liability protection above the limits of your boat, auto, and homeowners policies. It protects you from bodily injury liability claims from at-fault auto accidents or injuries to others on your property. Umbrella insurance also covers property damage liability claims resulting from damage to another person's belongings. If you are sued for false arrest, libel, and slander, this insurance offers coverage against these as well. Umbrella insurance policies safeguard your existing and future assets including wages, property, and inheritance, helping to reduce the possibility of financial loss.
Who Needs Umbrella Insurance?
While some believe that only wealthy people need umbrella insurance to safeguard their assets, everyone should consider purchasing this coverage as a protection against unexpected financial loss. It isn't possible to know whether you’ll lose a lawsuit resulting from an accident on your property. These lawsuits quickly become expensive if you need to pay medical expenses and lost wages to the winning party. If you don't own enough assets to cover the cost of the judgment, your wages are garnished. Umbrella insurance is a cost-effective way to provide peace of mind and know everything you’ve worked hard for is safe.
The experienced team at Tower Community Insurance in Jackson County have been passionate about helping members in Tennessee and Alabama safeguard their assets for over 40 years. Call (256) 259-1116 to receive an insurance quote. Visit them online to learn more about umbrella insurance policies.