One of the most challenging aspects of shopping for insurance is making sure you purchase an adequate amount of protection. Not having sufficient coverage can result in serious financial hardship in the event you’re ever sued. Fortunately, umbrella insurance makes it possible to properly protect your savings and assets. This type of policy provides an extra layer of security in situations where you are liable for damages that extend far beyond your primary home or auto insurance limits. Here is some further insight into why an umbrella policy is a worthwhile investment.

The Importance of Umbrella Insurance 

How Umbrella Policies Work 

Most standard insurance policies will only allow you to buy a certain amount of liability coverage. If your financial obligation in a lawsuit exceeds these limits, you will have to pay the remaining damages out of pocket. However, when you have umbrella insurance, it will kick in to pay the leftover balance once your original policy has reached its maximum limit. An umbrella policy can also cover liability claims that are completely excluded from other policies.

What They Cover 

Umbrella insurance is designed to cover a wide variety of incidents you are at risk of being held liable for. This includes any bodily injury that occurs at your home, dog bites, damage to someone else’s property, libel or slander, invasion of privacy, and malicious prosecution. It will also pay for the legal fees you incur for defending yourself in a lawsuit and the associated court costs. 

Why You Need One 

The liability limits on many car and homeowners insurance policies are no longer acceptable for the increased risk people face on a daily basis. This is a litigious society, and you don’t necessarily have to be wealthy for someone to sue you. Even if you don’t have the money to pay for a judgment, there is potential for the court to award all your assets and/or garnish your future earnings to pay for a claim. Umbrella insurance can make all the difference in whether or not you face financial ruin from a lawsuit.

Life is full of unexpected events that can suddenly put your financial wellbeing in jeopardy, but umbrella insurance can keep this from happening. If you have yet to add an umbrella policy to your protection plan, contact P.D.H Insurance Brokerage Inc. Offering more than three decades of experience, they can help determine how much coverage is necessary to suitably safeguard your interests. As an independent agency, they have partnered with a number of reputable industry brands to provide residents in and around Valley Stream, NY with quality products at competitive rates. Call (516) 561-5227 to inquire about a quote, or visit them online for more information about their services.