If someone gets injured or experiences property damage and you or a member of your family is liable, your homeowners or auto insurance policy can cover the cost of a claim. In some cases, however, your coverage limits might not be high enough. 

In those instances, umbrella insurance can protect you from crippling financial loss. It’s a separate policy that you can take out in addition to your homeowners or auto insurance.

How Does Umbrella Insurance Work? 

If an individual who comes to your house gets hurt or that person’s property is damaged, or if you or a member of your household causes a car accident, you will file a claim with your homeowners or auto insurance company. If the coverage limits in your homeowners or auto insurance policy aren’t high enough to cover the medical bills or the costs to repair or replace damaged property, umbrella insurance will pay the difference. 

Umbrella insurance can also cover you in some situations that your homeowners or auto insurance won’t. For example, umbrella insurance can apply if you’re sued for slander or libel. It will not, however, cover intentional acts or damage to your own property. 

Do You Need Umbrella Insurance?

If you or a member of your family is liable for someone else’s injuries or property damage and you don’t have enough insurance coverage, the person can file a lawsuit against you to receive full compensation. You might be forced to sell your home or liquidate other assets. Umbrella insurance can protect you from financial ruin. 

If your home has a feature, such as a pool or trampoline, that increases the risk that someone might get injured, it can be in your best interest to take out an umbrella insurance policy. Having that extra coverage can also be a good idea if you have a teenager who isn’t the greatest driver, you frequently host large parties, or you have a high net worth.

How Much Does Umbrella Insurance Cost?

Even if you never need to use it, having umbrella insurance can give you peace of mind. The premiums for that additional coverage can be surprisingly affordable. The amount you’ll have to pay will depend on how much coverage you choose, where you live, and other factors. 

Petruzelo Insurance can help you easily compare coverage options and premiums and find the policy that fits your needs and budget. Contact us today to learn more.