Do I Need an Umbrella Insurance Policy?
You more than likely already have purchased different types of insurance policies to help protect your possessions and your family, but you may not know that there are other types of affordable protection available to you in addition to your standard auto, and homeowners policies. If you have additional savings and assets that you need to protect that go beyond your liability coverage, you may want to consider an umbrella insurance policy to protect your assets from personal liability claims. If you are located in Willmar, Minnesota, and have questions about your insurance coverage, MG Insurance Inc. can help. Continue reading to learn more about purchasing an umbrella insurance policy.
How Umbrella Insurance Works
Umbrella insurance is intended to be a supplement for other insurance policies that a policyholder has already purchased, including their automobile, renters, homeowners insurance, etc. It aims to protect your assets from any liability claims that are made against you when your other policy’s liability limits are exceeded. For example, if someone is injured on your property, and the injury costs that you are deemed liable for surpass your personal liability limit, your umbrella policy would kick in and cover those liability costs up to your umbrella policy’s limit. This helps ensure that your assets and all that you have worked for are protected in the event of a costly accident.
What Does Umbrella Insurance Cover?
Umbrella insurance covers three main areas, including:
- Property damage liability – this covers the loss or damages to someone else’s property and includes costs related to damages in a car accident, claims incurred by damages caused to someone else’s property, etc.
- Bodily injury liability – this covers the cost of injuries to someone else, and can include medical bills, and the liability claims resulting from injuries in a car accident if the policyholder is at fault, if someone is injured on your property or your pet injures someone, etc.
- Other personal liability – which covers actions by a policyholder that could cause them to be sued by others, such as libel, slander, mental anguish, etc.
Determining Your Need for An Umbrella Insurance Policy
If you are trying to determine whether or not you should purchase an umbrella insurance policy, first calculate your net worth by adding any savings and assets, and then subtracting any debts that are owed, and figure out your liability limits. If your net worth is higher than those liability limits, you will want to get into contact with your insurance agent if it is possible to increase your coverage. If the maximum amount of your auto and homeowners insurance is less than your net worth, you will need an umbrella insurance policy to ensure that all of your assets are covered. If you are interested in expanding your coverage with an umbrella policy in Willmar, Minnesota, contact MG Insurance Inc. today for a consultation.