So, what is an umbrella policy? This means that if you’re involved in an accident or lawsuit that exceeds the limits of your standard insurance policies, an umbrella policy can kick in and cover the remaining costs.
Now, you might be thinking, “But I already have car insurance and homeowners insurance, why do I need an umbrella policy?” Well, the truth is that accidents can happen, and lawsuits can be costly. If you’re found liable for damages that exceed your insurance coverage, you could be on the hook for a hefty bill, potentially putting your assets at risk.
For example, let’s say you’re in a car accident, and the other driver sustains serious injuries that require extensive medical treatment. If your auto insurance policy only covers up to $250,000, but the other driver’s medical bills exceed that amount, you could be responsible for paying the difference out of pocket. That’s where an umbrella policy comes in handy, as it can cover the remaining costs.
In short, having an umbrella policy is like having an extra layer of protection for your assets. It may seem like an added expense, but the peace of mind it provides is priceless. So, if you haven’t already, consider adding an umbrella policy to your insurance coverage. You never know when you might need it!
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