Why Do I Need Umbrella Insurance?

Why Do I Need Extra Coverage from Umbrella Insurance?

Umbrella insurance is an add-on beyond standard liability cover provided by home or auto insurance policies in California.

It offers an additional liability limit to cover extraneous risks like medical expenses, settlement, and legal costs.

You can run into trouble following a drowning accident if you’re a generous homeowner who likes entertaining friends and family.

There’s a risk of a potential lawsuit for failing to maintain pool safety accessories like ladders, warning signs, or diving boards.

Therefore, Umbrella Insurance is vital protection that can shield you from additional unforeseen risks.

Below are some reasons why you need extra coverage from umbrella insurance.

To discuss your specific insurance needs, reach out to our Northridge, CA insurance professionals today. 

Protecting Your Assets

Personal assets like real estate, cars, and financial instruments form part of your wealth.

Umbrella insurance protects your assets in several ways.

First, it offers additional coverage in case of accidental damage to your property.

Secondly, it can save you from an attachment order on your assets in case of legal liability.

Remember, settlement claims can cost millions of dollars, putting your wealth at risk.

Lastly, most standard covers offer a limited liability cover that exposes you to loss.

On the contrary, an umbrella cover has several add-ons to provide maximum coverage.

Road Accidents

If you spend long hours on the road, fatigue, error in judgment, and other factors increase your risk of causing an accident.

Remember that accidents result in the death of victims, severe injuries, and lost earnings. 

A victim can sue you for negligence, overspeeding, drunk driving, or distracted driving.

Sadly, the legal costs, settlement, and related medical expenses can quickly bankrupt you without umbrella insurance.

If You Own an Extra Home

People love owning extra homes like holiday homes, cabins, or a condo out of town.

If these properties remain unoccupied or unsupervised for long periods, they can cause nuisance or attract uninvited guests.

If you temporarily rent it out and someone gets injured or commits a crime, you could be sued for negligence.

The jury only needs to prove negligence on the part of a property owner. 

Remember, standard home insurance may not cover the risks associated with temporary renting.

An umbrella policy is a vital contingency plan that protects homeowners against theft, legal liability, and property damage.

Dog Bites

According to the Insurance Information Institute, claims from dog bites and related injuries cost an estimated $800m in 2021.

In addition, the average claim was $49,025. Although homeowner insurance covers dog bites, a hefty claim beyond the cover can ruin your finances. 

Some homeowner insurance excludes canine liability for property damage or bodily harm.

Others have a prescribed liability say $25,000, or exclusion of specific dog breeds.

It’s, therefore, prudent to tap on the added protection of an umbrella cover.

Protect Your Finances and Assets With Umbrella Insurance

A single incident can result in unforeseen medical expenses, legal suits, or unbudgeted repairs.

Fortunately, Panorama Insurance Agency Northridge, CA has an umbrella insurance policy to shield you from the above risks. Contact us online or call us at 818-781-6630 to get a quote.