EM Ford RiskGuide Blog

Understanding Umbrella Insurance

Written by EM Ford | Sep 3, 2020 4:47:55 PM

The purpose of obtaining insurance is protect you from the unexpected. But what happens when the unexpected exceeds the amount of protection you’ve selected on your home, auto, or other policies? Umbrella insurance has you covered.

Umbrella insurance is a personal liability insurance policy that provides additional coverage that may not be included in your base auto and home insurance policies, including legal fees. This protects you financially from having to pay out-of-pocket for things like:

  • Others' injury treatment
  • Others' property damage
  • Lawsuits involving libel, slander, defamation of character or other personal attacks
  • Legal defense costs

What if you cause an 8-car accident and your auto policy isn’t high enough to cover the cost of the damage for all 8 vehicles and there are injuries? What if your teenager throws a party at your house while you are out of town and an attendee gets injured at your home and their parents sue you? What if your dog gets out of the house and attacks a neighbor who is out on a walk and they sue you for injury and/or loss of wages while they are recovering? Are you prepared for all of life’s “what ifs”? All of these are unfathomable situations we never imagine ourselves being in, but accidents happen.

The cost of umbrella insurance is much lower than normal insurance policies, and can save you financially from situations you never dreamed would happen to you. These policies not only protect you, but they protect members of your household as well.

We don’t plan for accidents, because they’re accidents. But unexpected situations can pop up at any time, and can unfortunately drastically change the trajectory of our lives financially and in other ways. Are you prepared?

We are here for you. If you have any questions about umbrella policies and if this type of insurance is right for you, click the link below to talk to one of our advisors and download our Umbrella Coverage Guide below.