Worst Case Scenarios: 5 Reasons You Need Umbrella Insurance

Like many people, you probably have homeowners insurance, auto insurance, and life insurance. You might feel that your current coverage protects you in the event of a problem. But does it give you enough coverage? Often, yes. Your homeowners insurance will cover many types of situations — to a point. Auto insurance will also cover you through most common scenarios. However, there may be instances where you need additional coverage. This can be had in the form of an Umbrella policy.

What Is An Umbrella Policy?

It’s extra protection. It protects your assets above and beyond your current home and vehicle coverage, up to the limit of the policy. It helps protect you in the event of a lawsuit due to a tragedy. It may cover legal expenses such as attorney fees. Here are five situations that an umbrella policy may help you through:

1. Bodily Injury Or Death In Your Home

It’s anyone’s worst nightmare. Someone visits your home and an accident occurs. If someone becomes severely injured or dies in your home, you may be held liable. Depending on the situation, you could be sued for wrongful death. While your homeowners insurance can help cover much of the costs involved, it may not be enough. 

2. An Automobile Accident

On the road, accidents happen. If you are in a car accident and are found at fault, you may be liable for damages, injury and more. Depending on the state you live in, the amount of coverage your auto insurance includes and other circumstances, a lawsuit or other action against you can be financially devastating. Umbrella insurance can give you piece of mind.

3. Accidents On Recreational Vehicles Such As Boats, Dirt Bikes, Etc.

4. Damage You May Cause To Someone Else’s Property

5. Libel Suites Or Other Lawsuits

Again, while you hopefully never need the extra protection of an Umbrella Policy, it does provide that protection, as well as peace of mind for you and your family. Talk to your local Alcorn Insurance Agency and find out if an Umbrella policy is right for you.