Umbrella insurance comes in handy in two cases:
1. When the expenses of an accident exceed the natural coverage of prior insurance; and,
2. When you have claims for damages contained in the law that compel financial redress that is not covered by other insurance.
Insurance companies only pay for a portion of accidents when you are responsible, but what about the rest? THAT’S WHEN THE UMBRELLA INSURANCE COMES IN HAND!
If you are covered by a liability policy, you will be protected if you are held responsible for a higher ammount than what your policy covers. In addition to protecting you, it can also reimburse you and your family members for injuries they cause. By protecting your finances and assets, it can also save you money. If you do not pay a liability claim for which you are responsible, you can be sued. Your personal assets could then be at risk.