The term umbrella insurance is used because it covers liability claims for all the policies underneath of it such as homeowners and auto insurance policies. Umbrella insurance policies give broad insurance beyond standard home and auto. The term also relates to how an umbrella policy “shields” or protects the insured assets on a wider span than primary coverage.
Some people will ask “Why do I need an umbrella policy on top of what I already have in place for insurance?” This is a good question, and here is the reason why: In the world that we live in today people are “sue crazy,” meaning people will sue you for just about anything they can to get money. An Umbrella policy is put into place to help with a situation like this because you could be forced to pay legal judgment from current assets as well as future earnings.
Umbrella policies are an inexpensive way to protect yourself and everything you have worked for from devastating lawsuits. Umbrella policies are not expensive because they only kick in after you’ve used up all of the liability coverage under your auto or homeowners policy. It is a good idea as long as you’re earning a living, to have an umbrella policy in place. With the costs of umbrella policies being so low, there is no good reason not to protect everything you have worked for, not to mention everything you could be working for in the future!
To hear more about our Umbrella insurance, please contact the Bachmann-Zeitlin Insurance Agency, today!