6 Scenarios Where You Need Umbrella Insurance
When your standard insurance policies aren’t quite enough coverage, umbrella insurance help be there to help out. It’s a wild, wild world out there. It’s best to be prepared for whatever life throws at you. Let’s take a look at some situations where having an umbrella coverage could help protect you.
In this situation, let’s imagine one of your family members is watching a neighbor’s child. If they turn their back for a second and the child gets injured, you could have some serious medical expenses to cover. In a worst-case scenario, if there’s a surgery involved, it could be hundreds of thousands of dollars. Here, umbrella insurance could help extend your liability coverage so that these expenses don’t come out of your pocket.
Birthday parties are a fun way to get together with friends and family. Having all those people in your home is fun, but accidents can happen. If someone gets home jumping on your trampoline, falls down some stairs, or slips on a spill, your homeowners liability can help protect you. However, your homeowners insurance has limits, and if the damage exceeds your liability, then umbrella insurance can help extend those limits.
A get together with friends or family can sometimes involve alcohol. Intoxication can often lead to not-so-great decision making. If you are drinking with someone and they get into an accident and claim that you over-served him alcohol, you might be faced with some of those expenses. Indirect liability is something that we don’t always account for. In these situations, your homeowners insurance may not cover the indirect liability. Umbrella insurance can be there to help!
Always remember, drinking and driving is never okay! If you know someone has been drinking, offer alternative ways to get home. Learn more about alcohol and ways to stay safe here.
Teen drivers are notorious for getting into accidents. With a teen driver, having an umbrella insurance policy is a no-brainer. There are a lot of “what-ifs” with a new teen driver. For instance, what if they decide to go on a joyride with some friends and something happens? You could have a huge medical bill on your hands. Umbrella insurance helps to extend your existing auto insurance coverage limits so that if these things do happen, it can help protect you financially.
Dogs and Pets
Though we love our furry friends, they may not love everyone they encounter. Dog bites are a common liability we overlook. If your dog bites another dog or person, they can cause a huge amount of damage. In the event of a dog bite, umbrella insurance can help cover things like medical expenses, lost wages, and even the trauma from the event.
Learn more about dog bites and your insurance here!
Being sued for slander isn’t something we think about often, but it does happen. If you post a yelp review and the business sues you for slander or defamation, it could be a huge out-of-pocket expense. Hopefully, something like this doesn’t happen to you, but if it does, that’s where umbrella insurance can help. It’s better to be prepared because you never know what is going to happen out there!
Umbrella insurance is there to help add some additional coverage that your existing policies may not cover. It’s an extra layer of protection for the unexpected. You should talk to your agent about adding umbrella coverage to your policy. And if you have any questions or concerns about it, they can help address those!