Important points In order to protect my assets, it is important to me to have a lot of insurance. I paid high premiums for high liability limits on my home and car insurance. I bought umbrella insurance for less and was able to lower my other coverage limits.
Adequate insurance coverage is very important to me. In particular, I want to make sure I always have enough liability insurance. This is the type of coverage that pays if someone is injured on my property or in an accident I cause.
Extensive liability insurance protects against expenses, since an insurer only pays up to the policy limit. I didn’t want to worry about my bank account having to be emptied if a claim is made against me and my insurance isn’t enough.
To ensure my assets are fully protected, I used to have a large liability policy for both my car and home insurance. But I was able to lower my costs and actually get better protection by making a simple change. Here’s what I did.
Buying this type of insurance made all the difference
While I previously opted for $500,000 liability coverage for my auto insurance and home insurance, I have now reduced the policy limits on those two policies to $250,000. But I now actually have $1 million in liability coverage in the event of a car accident or an incident at my home. That’s because I chose a different type of cover.
The insurance I have taken out is called umbrella insurance. It is a secondary insurance that only pays out when I have exhausted my primary insurance cover. And it pays off for every insured event, whether at home or on the go.
The premiums for the policy are also very affordable, even for a $1 million policy, as it is a secondary insurance policy. I am actually paying less for my Umbrella policy than I previously paid higher premiums when both my home and auto insurance had higher policy limits.
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The basic way my umbrella insurance works is that the insurer requires me to carry $250,000 of liability coverage for my home and auto policies. However, if a covered loss occurs that causes damage to someone else in excess of $250,000, the Umbrella policy will pay the uncovered costs.
So the umbrella policy provides even more protection for my assets as I would have insurance that would pay out up to $1 million if something went wrong. And it’s more cost-effective than opting for higher coverage on other plans because it’s only paid out if a real disaster strikes, so there’s less risk for the insurer.
Is buying an umbrella policy a good financial choice for everyone?
Purchasing an umbrella policy can make sense for anyone who has many assets to protect and wants to ensure they have adequate liability insurance. If you don’t want to be afraid of being personally sued in the event of an accident, you should check whether buying an umbrella policy could be cheaper than high policy limits with other insurance companies.
It’s easy to get umbrella insurance quotes in minutes, so check today if umbrella insurance can provide the protection you want at an affordable price.
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