What is the Importance of an Umbrella Policy?
What is the Importance of Umbrella Insurance?
Umbrella insurance is something many people hear about only through an insurance agent, lawyer, or financial advisor—and sometimes only when it’s too late. This year, we want to emphasize the importance of Personal Umbrella Insurance and why it should be part of your financial safety net.
Do You Really Need Umbrella Insurance?
Ask yourself the following questions:
Do you use social media?
Do you own a home?
Do your kids drive?
Do your kids use social media?
Do you host gatherings at home where alcohol is served?
Do you own a dog?
Do you have assets such as real estate, investments, or a retirement plan you want to protect?
Do you own recreational vehicles like a boat, ATV, or jet skis?
If you answered “yes” to any of these questions, then it’s a good idea to consider personal umbrella insurance.
What Does Umbrella Insurance Do?
The primary purpose of an umbrella policy is to protect your assets and future earnings by providing an extra layer of liability coverage above and beyond your auto, homeowners, or boat insurance policies. In the event of a catastrophic loss, an umbrella policy can:
Cover liability claims exceeding your primary policy limits.
Step in when your primary policy doesn’t cover the loss, subject to a deductible of your choice.
While your auto, homeowners, or boat insurance may provide up to $500,000 in liability protection, unforeseen circumstances and the litigious nature of today’s society can expose you to damages that run into millions of dollars.
Common Scenarios Where Umbrella Insurance Helps
Dog Bites: If your dog bites a neighbor’s child, leading to a lawsuit.
Fire Damage: A fire originating on your property spreads and damages neighboring homes.
Teen Drivers: Your teenager causes a car accident while driving friends.
Vacation Accidents: You’re involved in an accident while abroad.
Defamation Lawsuits: You’re sued for invasion of privacy, libel, slander, or defamation of character.
Each of these situations could result in liability claims that exhaust the limits of your standard insurance policies. That’s where a Personal Umbrella Policy can step in to protect you.
Why It Matters
The financial implications of a major lawsuit or catastrophic event can jeopardize everything you’ve worked for. A Personal Umbrella Policy provides peace of mind by ensuring that your assets, including your home, savings, and retirement accounts, are safeguarded against substantial liability claims.
Get a Quote Today
Don’t wait until it’s too late to protect your financial future. Contact us today at 973-683-1000 to discuss how a Personal Umbrella Policy can help safeguard your assets and provide the security you deserve. At BIS Improved Insurance agency we have been providing Personal Umbrella Insurance to Morris County NJ, PA, and NY for over 40 year. We are happy to answer any questions to make sure you are properly covering your assets.
