Umbrella insurance covers quite a bit of stuff that a regular auto or homeowners insurance may not cover. This can be anything from someone falling in your house to your dog biting someone. However, how do you know if you should get it? Well, here are a few reasons you should consider purchasing a plan.
It protects you if your pet attacks someone.
As mentioned before, if your pet attacks someone, what are you going to do? It's likely the victim will have to go to the doctor. That means you'll have to pay for them to go through a medical examination and any medicine involved. This can quickly add up to be quite a bit of money. A doctor's appointment could be around $300 without insurance and then the average cost of a rabies shot is between $15 and $38. You're looking at $338 worth of damages in this alone.
However, if you have umbrella insurance, you'll be covered. If your dog attacks someone, the policy will kick in and cover any damages with little to no out of pocket cost. They'll deal with everything so you don't have to.
It protects you in auto accidents.
You never know if you're going to get into an auto accident. Maybe an animal runs into the road or your tire popped. There are several scenarios where you can get into an auto accident where it isn't your fault. Regardless, you'll have to pay out of pocket for any damages to other vehicles. Considering most auto policies cover up to $500,000, you might be out of luck if it involves more than one vehicle. Damages to cars add up fast.
Fortunately, if you have umbrella coverage, you'll be covered in the case of a multi-car accident. Most umbrella policies cover up to $1 million in damages after your auto policy has paid the maximum. So, you'll have you $500,000 policy and your $1 million umbrella coverage watching your back in any situation.
It protects you if you're a landlord.
Sometimes residents get hurt in your home. Maybe they trip on a sidewalk crack and hurt themselves. If the tenant chooses to sue, you can be out a lot of medical bills as well as mental anguish. If you have an umbrella policy, then you'll have to pay little to nothing out of pocket. You'll be covered and your insurance company will take care of everything.
It protects your home and assets.
In the case of a lawsuit where you have insignificant coverage, your home and assets will be at risk. Umbrella insurance not only protects you, but your property as well. This is commonly referred as your "net worth." To calculate your net worth, add your property and your assets, and then subtract any liabilities you have. If you add up your net worth and it exceeds the coverage that you already have through homeowners or auto, you should definitely consider purchasing umbrella insurance.
