Umbrella insurance can be described as an extra layer of protection, a second level of security, or a wise decision for many people. Protecting your life, assets, family, and more starts with a personal umbrella plan. While it does not provide new types of coverages, it simply powers up all of your existing homeowner’s insurance, auto insurance, and other insurance policies you have active.
Many business owners purchase umbrella insurance for their companies. Typically, when a business owner has a claim where their umbrella insurance policy protects them and their business, they purchase personal umbrella insurance. Rather than increasing coverage for one area of auto insurance or homeowners insurance, they get all areas of insurance coverage boosted with personal umbrella insurance.
How Does A Personal Umbrella Insurance Plan Work?
Before we get into the benefits of a personal umbrella plan, let us break down exactly how it works. If you are a typical resident and homeowner in Pennsylvania, you will have homeowners insurance, auto insurance for two or three vehicles, and maybe additional insurance for a boat or off road vehicle. If you are retired, you probably have RV insurance in addition to your auto insurance.
You may be looking at your coverages and seeing the cost of repairs and maintenance increasing. For a lot of people, there have been instances of being underinsured with the cost of lumber or the cost of vehicles increasing. So should you increase your coverage on your home or your vehicle? Both separately? What umbrella insurance does is it gives you the flexibility to sway additional coverage to the area that needs it. It truly is an extra layer of personal insurance protection.
What Does Personal Umbrella Insurance Cover?
If you do not have any insurance coverage, personal umbrella insurance doesn’t exactly work. What it typically covers is liability insurance you already have. For instance, liability that relates to bodily injury, personal property damage, or other areas of personal injury like libel or psychological distress. These are written up in your auto insurance policy as well as your homeowner’s insurance policy.
Benefits Of Personal Umbrella Insurance
Below is our list of benefits of personal umbrella insurance:
1. Additional Coverage Limits
The primary benefit of having a personal umbrella is it operates just as intended. You can have piece of mind as your coverage limits have an extra buffer of protection. Personal umbrella will provide an extra layer of protection. So let’s pretend your auto insurance uses up the liabilty coverage, your umbrella coverage picks up where your auto insurance coverage left off.
2. Personal Umbrella Insurance Cost Effective
As mentioned above, you could choose to take the same amount of insurance premium and only apply it to your auto insurance. This will be a gamble if something terrible happens to your home. For the same cost you could purchase a personal umbrella insurance plan, and it would provide more versatile coverage without you having to increase every insurance coverage’s premium and coverage.
3. Protect Yourself From Insurance Fraud With An Umbrella Plan
As more and more insurance fraud situations occur, it is only a matter of time before businesses are no longer the targets of insurance fraud but everyday people. Having a personal umbrella plan can help protect you from the unexpected by creating an extra layer of protection.
Even if the perpetrator is performing insurance fraud, a large number of lawyer fees and costs will develop while the case is handled. Your umbrella insurance will provide the needed coverage to handle being targeted by an insurance fraud situation.
4. Avoid Major Financial Loss With A Personal Umbrella Plan
If you were to be sued or held liable for damages, your insurance coverage kicks in, but let’s say your insurance coverage is only able to cover half of the cost. An umbrella plan can keep the costs from reaching your savings, and it may provide that additional coverage needed.
Contact Strickler Insurance For Personal Umbrella Insurance
Strickler Insurance can asses your current insurance coverage, as well as your coverage needs to help you with the perfect personal umbrella insurance plan. Contact us today!