Many people are confused about umbrella insurance and what it has to offer. Umbrella insurance provides extra liability coverage to protect you against serious accidents you may cause. This coverage exceeds the limits of your auto, home or renter’s insurance policies. The following facts from DeNooyer Direct Insurance Services LLC in Albany, NY help dispel misconceptions about umbrella insurance so you can make wise decisions concerning this protection.
Misconception: Umbrella insurance protects your jewelry, artwork and other costly items.
Fact: Umbrella insurance offers liability coverage, not protection for personal property. Liability insurance pays for injuries or damage you cause others in accidents that are your fault. Umbrella insurance starts once the limits of your home, auto or renter’s liability coverage have been exhausted.
Misconception: Umbrella insurance replaces home, auto or rental liability coverage.
Fact: Umbrella insurance works in conjunction with home, auto or rental liability coverage. In fact, you cannot obtain umbrella coverage unless you have other forms of liability coverage.
Misconception: Umbrella insurance is extremely expensive.
Fact: Umbrella coverage is actually quite affordable, taking into consideration the protection it has to offer. Policy costs vary depending on the amount of coverage you desire. If you own a lot of property or have substantial assets, you’d do well to purchase sufficient umbrella coverage to protect these assets against large liability claims that can lead to lawsuits.
Misconception: Only wealthy people need umbrella coverage as they’re more likely to be sued for accidents.
Fact: Even "ordinary" people can be sued if they’re found negligent for an accident. A lawsuit can cost you your savings, retirement or investment funds, not to mention funds from future income to settle a liability claim. Umbrella insurance can protect your assets by covering settlement costs.
To learn more about umbrella insurance, contact DeNooyer Direct Insurance Services LLC in Albany, NY.