Many people believe they have obtained adequate insurance protection to cover themselves should anything happen to their vehicles, home, or other property. Imagine their surprise when it is brought to their attention that they have gaps in insurance coverage and could potentially face very costly out-of-pocket expenses in the event of an accident.
Why Have Umbrella Insurance?
If faced with a loss, it may not take long for an individual’s existing insurance policy to reach its maximum policy limits. When this happens, the best case is one in which the person has exercised enough foresight to have already put into place an umbrella coverage policy. Such coverage can help bring tremendous relief when it kicks in and covers additional costs. In the state of Florida, Southern Guard Insurance is in the business of delivering packaged peace of mind that comes with an umbrella policy. Complete the form, and we can start helping you right away.
How Umbrella Coverage Works
As an example of the protection that umbrella coverage provides, let’s take a look at this scenario. A homeowner’s insurance policy stipulates that liability coverage of $300,000 is provided. What happens if there is a loss in the amount of $470,000? Without an umbrella policy, this dilemma could spell disaster for the affected homeowner. With an umbrella policy, however, the amount of loss above the $300,000 policy threshold will be paid until the maximum limit chosen for the umbrella policy is reached.
Looking at a different scenario, let’s say an insured person’s liability limit on his car insurance provides for $250,000 of protection for bodily injury to each injured individual, capping at a maximum of $500,000 per accident. Clearly, if three passengers each suffer injuries costing $250,000, the liability coverage is not sufficient to pay for all the injury costs. At this point, an umbrella policy will cover the balance of injury expenses above the liability policy’s $500,000 limit.
Benefits of Umbrella Coverage
The cost of a personal liability umbrella policy is often relatively inexpensive when considering the added coverage that is gained. Additionally, the coverage accompanies the insured for his or her non-business activities no matter where the individual is on the face of the globe.
The topic of insurance is not one that most people discuss on a daily basis. Insurance tends to be one of those items that sits by itself off to the side most of time. It’s there if you glance up, but it’s definitely not at the forefront of the evening’s discussions. However, when calamity strikes through auto accident or home disaster, thoughts and conversations immediately turn to the subject of insurance provision. This is the time when an umbrella policy can be worth its weight in gold.