What Should You Consider When Purchasing Umbrella Insurance Policy?

What Should You Consider When Purchasing Umbrella Insurance Policy?

Umbrella insurance policy is a type of liability insurance which provides protection from potential lawsuit judgements against you. In simplest terms, it provides coverage beyond the ordinary limits set in ordinary policies. It may also provide coverage for claims that are excluded by other mainstream liability policies.

Many people wonder if it is even necessary to purchase this insurance. They view this policy as redundant and waste of resources. However, if you have property or assets that require protection; it would behoove you to consider buying it.

What are the Benefits of Umbrella Insurance Policy?

This insurance policy is incredibly diverse. It can provide protection against many scenarios and circumstances. Following are a few examples where it could prove to be beneficial;

1. Significant Property Damage

It is possible that you may get into an auto accident where you destroy another vehicle or property. If the damages exceed limitations of your standard auto insurance policy. Then umbrella insurance policy will provide the rest of coverage.

2. Significant Bodily Injury

If a guest in your home falls from the balcony, or is bitten by a pet you would be liable to pay for the medical and other costs. If the damages exceed limits of traditional homeowners’ policy then umbrella insurance policy will cover remainder of cost.

3. Landlord Liability

You might own certain properties, houses, apartments or buildings that are rented to tenants. The tenant might sustain an injury while renting the property. If the standard landlord policy does not cover full extent of coverage, then umbrella insurance policy would provide additional coverage.

4. Libel or Slander

You could suffer from a lawsuit if you say or write something slanderous against another person or entity. Umbrella insurance policy would cover you against additional damages that exceed regular insurances.

5. Malicious Prosecution

If you sue someone and are sued in return for wrongful prosecution, you may be forced to pay significant damages. Umbrella insurance policy would cover the additional costs that exceed the commercial insurance plans in such a case.

What Does Umbrella Insurance Policy Cover?

In most basic terms, this policy provides coverage for;

  • Expensive legal fees for defense against a lawsuit.
  • Costs of a settlement or judgement that exceed mainstream policies.

Without this coverage, you would likely pay out of your own pocket. The legal costs of gaining quality defense in a lawsuit are quite high. Moreover, if a lawsuit judgement passes against you, you could be forced to pay damages more than your worth. In such cases, you could have a lien on your house and your wages might be garnished. You could also have your savings and other various assets wasted in this pursuit. Get help form insurance companies in this situation.

What Have You Got to Lose?

The liability than might befall you in such cases can be very devastating on your financial situation. It is estimated that more than 13% of personal injury liability cases are settled for $1 Million or more. But not every one can afford this much. Umbrella Insurance can be regarded as godsend in such circumstances. If you are truly confused about buying this insurance, ask yourself these two questions and you will have your answer;

  • What have you got to lose by not buying this insurance policy?
  • How much risk are you taking by not buying this insurance policy?

Gain Umbrella Insurance Policy in Dallas, Texas

SGA Financial Inc. has proven itself to be one of the best insurance providers in the area. We understand the necessity of this insurance policy, hence we can guide you accordingly. Have a look at our service now to learn about it first, only then will we ask you to buy it.