While insurance is a complicated topic, it is important to be educated about the different types of policies and coverage available, its uses, benefits, and drawbacks. We come across a great deal of misinformation on the Internet, making it difficult to distinguish the truth from the myths.
When it comes to umbrella insurance, two common myths come to mind:
Myth: Umbrella premiums are too high.
It may come as a surprise how affordable umbrella insurance actually is. For a payment as low as $14 each month, policyholders can typically add $1 million or more of safety liability coverage. The cost depends on personal risk factors such as the number of homes, automobiles, and recreational vehicles you own, as well as the driving experience of each operator. However, premiums rarely exceed $200 per year for $1 million worth of coverage and the peace of mind that comes with it.
Myth: Only the rich need umbrella insurance.
Actually, umbrella insurance is just as important for low and middle-income individuals and families as it is for the wealthy if they own any assets that value more than their current liability limits. These days, just about anyone can face a liability lawsuit if they are responsible for someone else’s loss, injury, or death. However, standard policies will not always cover the amount of money for which they are sued. While wealthier individuals and families may be able to cover the out-of-pocket expense, others cannot. Umbrella insurance provides that much needed additional layer of protection, beyond the limits on homeowners, renters, and auto policies.
Hopefully, we clarified any misconceptions you might have had regarding umbrella insurance. If you have any questions, give us a call at 845-986-1177.
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