There are many types of insurance to consider. The few that might come first to mind are auto insurance, health insurance, homeowner's insurance, and life insurance—but have you ever heard of umbrella insurance?
Even for those who have heard of this type of insurance, there can be a lot of misunderstandings and rumors flying around. In this post, we will be debunking some of the most common myths about umbrella insurance so that you can have a clearer understanding of what it is and how it can benefit you.
Myth 1: Umbrella Insurance Is Only for the Rich
This is one of the most common myths about umbrella insurance. It's easy to assume that only the wealthy could afford to purchase this type of insurance. In reality, though, it's not as expensive as you might think. The purpose of umbrella insurance is to provide extra liability coverage in case your other policies max out. It's actually quite affordable, with most policies costing only a few hundred dollars a year.
Myth 2: Only People with High-Risk Jobs Need It
It’s true that certain professionals, such as doctors and lawyers, may be at a higher risk of being sued than others—but anyone can be sued for anything. You might assume that your homeowner's or auto insurance is enough, but if someone is injured on your property or in an accident involving your vehicle, the damages could easily exceed your policy limit. Umbrella insurance offers additional liability coverage that covers what your basic policies don't.
Myth 3: I Don’t Need Umbrella Insurance Because I Don’t Have Many Assets
Even if you don't have a lot of assets, you could still be at risk of being sued for more than your insurance policy would cover. If you were sued for $500,000, and your homeowner's policy only covers up to $250,000, you would be responsible for the remaining $250,000 out of pocket. In this hypothetical scenario, umbrella insurance would cover the remaining amount if you have the policy.
Myth 4: Umbrella Insurance Is Too Complicated
Like any type of insurance, there are details involved that can be confusing. But that's where a good insurance agent comes in. They can walk you through the process and answer any questions you may have so you understand exactly what you're getting when you purchase an umbrella policy. Don't let confusion hold you back from protecting yourself.
Myth 5: I Don’t Need Umbrella Insurance Because I Don’t Have Kids
This isn’t true at all. While those with kids might especially benefit from the extra liability coverage that umbrella insurance offers, those who don’t have kids can benefit just as much. It's always better to be safe than sorry!
Are You Ready to Talk to a Professional?
Umbrella insurance is a valuable form of protection that every individual should consider. Don't let myths hold you back from obtaining the proper coverage that you need. Contact a reputable insurance agent and see how you can benefit from an umbrella policy today. Our experts at Insurance Specialists, Inc. can be the professionals you need to find the right policy for you.
Get in touch with us online to learn more.