Is Umbrella Insurance Necessary?

Imagine this scenario: you are driving home from work on an icy, snowy day when your car hydroplanes and crashes into a wealthy executive. He is injured for life, and your maximum payout on your car insurance barely scratches the surface of what his high-profile lawyers say you must pay. The courts take your savings, your home and even some of your paychecks. You are ruined.

This is a very unlikely situation, but it could happen, and it is exactly what umbrella insurance is designed to protect against. Umbrella insurance is extra liability insurance that kicks in when you reach the limits on your other policies. It covers both liability and legal fees for serious events like that imaginary car crash.

Umbrella coverage is an extension of your homeowner’s or auto insurance policy. Most people find it does not add much cost to their insurance coverage to add an umbrella policy, and the potential savings in a serious event are substantial. Still, it is not required by law, so many people choose not to buy it. Also, some who do buy it do not carry enough coverage to make it worthwhile.

The difficulty with umbrella policies is the fact that the events that require them are relatively rare. Yet, when those events do occur, the other involved party can take everything you have. For people with assets to protect, that protection is worth a small additional price. If you are ready to buy umbrella insurance, Warrior Insurance is ready to help you find the right policy.

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