As many families face financial strain in 2020, there is another troubling trend that is emerging. Umbrella insurance rates are rising, and this is leading many people to drop the coverage. Yet now at a time when finances are tight, liability claims can be all the more devastating. Let’s dig deeper into why you still need umbrella insurance, why the rates are rising, and how you can adapt to this new trend.
Most insurance customers have heard about umbrella coverage, but often the need for it is clouded in “what if” scenarios. Commonly umbrella insurance is sold with claims like “you never know when you’ll need it,” and “it only costs a little bit per day,” which makes it an easy choice for most insurance customers. Even so, the real need for umbrella insurance is pretty cloudy for most customers. Worse yet, if you get into court over a liability claim, you could be looking at $1 million or more in damages. Umbrella coverage only helps in circumstances like this if you have it before the liability claim. In order to help customers visualize just what umbrella insurance covers, we’d like to look at some real life umbrella insurance claims.
Today we’re going to examine the often overlooked option of umbrella insurance. You already have coverage to protect yourself from circumstances where you’re liable in a car accident or homeowners claim, and that is all the insurance you’re going to ever need, right? Well not so fast, it isn’t always an open and shut case when you’re liable, and we all know insurance policies only cover up to a certain limit or payout. So what happens if the payout for your insurance policy is maxed out but your case or claim isn’t completely settled? The worst case scenario is you could be heading towards financial ruin, but that can be avoided if you look into the extra safety net that umbrella insurance provides. Let’s examine the ins and outs of this often overlooked but increasingly important coverage.