Why You Need an Umbrella Insurance Policy

By: Edward L. Blais, JD, CIC

You’ve just purchased a new home and you’ve gone through all the motions to buy a homeowners insurance policy.  Maybe one day a guest slips on your property and sues you.  Your homeowner’s policy may not provide enough coverage to protect you, and you may end up being responsible for their medical expenses, as well as other legal damages and fees.

This scenario is more common than you think, and many times the homeowner finds out the hard way that their standard homeowner’s policy just doesn’t provide enough coverage.  Personal umbrella insurance policies are designed to help in such events. 

Umbrella insurance is a form of liability insurance that provides additional coverage above the limits of your basic policies. It can protect you from bodily injury liability claims, as well as property damage liability claims. Umbrella policies also provide a broader form of coverage and can help cover legal fees, even if you are not found at-fault. The best thing is that a personal umbrella policy is more affordable than you might think.

When determining how much more additional coverage you need, you should consider these three factors:

1. Potential loss of income – Should you be found responsible in the event of a lawsuit, purchasing a larger policy limit will protect both your current assets and future income.
2. The value of your assets – This includes property, retirement funds, possessions, art, and other important belongings.
3.  All possible risks you may face – This may include owning a pool, acting as a landlord, and anything else you may be found liable for if something were to go wrong.

Life can throw many unexpected curveballs, but we’re here to help. The funny thing about liability insurance is that the minute you need it, it's too late to buy more of it; so be sure to call Blais Insurance at 401-725-0070 to discuss adding an umbrella insurance policy today.

Information for this article provided by TrustedChoice.com