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One of the biggest concerns people have when shopping for insurance is that they won’t have enough coverage to protect them in case of a lawsuit. Fortunately, umbrella policies offer the ideal solution to this dilemma, as they supplement the liability coverage included in homeowners and auto insurance. Purchasing a policy is a cost-effective way to ensure your assets remain safe even if you’re sued for an amount that extends beyond what standard policies will cover. Here’s what you need to know to make an informed decision on how much protection you need.

Understanding Umbrella Insurance 

What Umbrella Policies Cover

Umbrella policies are designed to cover many different incidents you could potentially be held liable for. This includes bodily injuries someone else suffers while visiting your home, dog bites, damage you inflict on another party’s property, claims of libel or slander, invasion of privacy, and malicious prosecution. A policy will also help pay for court costs and any legal fees incurred while defending yourself. What it won’t cover is damage to your belongings, intentional or criminal acts, or liability claims against your business. 

How They Work 

insuranceWith a standard policy, you’re typically only allowed to purchase a limited amount of liability coverage. In the event you’re sued and given a financial obligation that exceeds these limits, you will be responsible for paying the rest out of pocket. However, if you opted for umbrella insurance coverage, it will take care of whatever remaining balance remains after the maximum limit has been reached on your original policy. Some umbrella policies also cover liability claims that are excluded from other policies.

Benefits of Having Umbrella Insurance

Lawsuits have become more common in this day and age, and the liability limits offered on car and homeowners insurance policies are often inadequate to account for the increased risk. Umbrella insurance will provide that extra layer of protection you need to avoid financial devastation if you’re responsible for an accident that results in substantial costs. It will also give you invaluable peace of mind knowing you’re protected against the unexpected.

 

Even the most cautious people can find themselves suddenly facing a liability lawsuit, so you need to be properly prepared to shield everything you’ve worked so hard for. If you need assistance estimating the appropriate coverage for your situation, contact Taake Insurance Agency LTD. They will help determine if it’s in your best interest to get umbrella insurance and will compare policies and prices for you. For more than 40 years, they have been entrusted to provide residents throughout Monroe County, IL, with high-quality products and unparalleled customer service. Call (618) 281-7656 to request a quote, or visit them online to learn more about their longstanding history. 

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