Whether it's for your home, boat, or vehicle, liability protection is vital to protecting yourself, but it's not always enough by itself. In this lawsuit-happy world, the addition of umbrella insurance can mean the difference between a stressful situation and bankruptcy. Take a closer look at this style of coverage and why it's so important.

What Is Umbrella Insurance?

The purpose of umbrella insurance is to extend the liability protections provided by other policies as well as cover issues not included in your current plans. If you're found liable for injuries or damage to someone else or their property, an umbrella policy will kick in after you've exhausted the coverage of the related policy, like home, auto, or motorcycle insurance. Most umbrella plans also offer financial protection for lawsuits in rarer categories, including those related to slander, libel, and false arrest.

How Do You Determine If You Need Umbrella Coverage?

Both home and auto insurance offer some of level liability coverage, but it's seldom enough to cover the full legal expenses and damage costs accrued because of a lawsuit.  As such, anyone who owns property should invest in umbrella insurance.

However, just because you don't own assets doesn't mean you're off the hook for liable claims. In fact, you could be sued for the same situations if you lease property as well as issues related to negligence or malicious intent. When it comes to liability coverage, it's better to be safe than sorry.

How Much Umbrella Insurance Do You Need?

Most liability coverage related to bodily injury is a few hundred thousand for both home and auto policies. Yet, the associated lawsuit could easily reach upwards of half a million dollars. To avoid having to cover those expenses out of pocket, it's standard to carry umbrella coverage with a minimum limit of $1 million. If the worth of your assets is higher than that amount, you'll need an even larger policy. Ask an insurance agent for their recommendation to ensure that you choose the right coverage level.

Umbrella insurance far exceeds the limitations of normal liability protection, so by taking out a policy, you can rest assured that you're adequately prepared for the unexpected. Find the perfect policy for your needs today by turning to Siemers Insurance Agency. For over 60 years, they have proudly met the coverage needs of businesses, drivers, and homeowners throughout the Greater Cincinnati, OH, area, including northern Kentucky and southeast Indiana. Request a quote today by calling (513) 469-8877 or by visiting the team online.