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Why Umbrella Insurance May Be A Great Idea For You

siadmin October 30, 2018 Insurance

When you don’t have enough coverage for your home or vehicle, your insurance agent may suggest umbrella insurance. Umbrella insurance extends your policy and offers extra coverage for things that may not be included in your original plan. While umbrella policies do cost extra money, they are still one of the most affordable ways to protect yourself.

Let’s learn more about why New Jersey umbrella insurance may be a great fit for you and your family.

What Does Umbrella Insurance Cover?

Umbrella coverage is a form of liability insurance that supplements your existing coverage. The purpose of having this insurance is to protect you from unforeseen accidents where you could be held responsible. The most common events that umbrella insurance covers are bodily injury liability claims and property damage liability claims.

Let’s say that you were involved in a car accident and found to be at fault. Several people were injured in the accident, and your insurance policy only covers so much. Rather than having your personal assets at stake, your umbrella policy would kick in and provide you with supplemental insurance to cover these costs.

Umbrella insurance in NJ can also be used to pay for legal fees, false arrest, libel, and slander. Of course, this all depends on the policy you choose and the benefits included.

Why is Umbrella Insurance an Asset?

We have to chuckle when people say, “Let them sue me! I have nothing!” While it can sometimes feel this way when you’re living paycheck to paycheck, we all have something to lose. Chances are, you have a car, a house, a checking account, a savings account, and a retirement account in your name; these are all considered assets.

If you are sued for a lot of money and your insurance doesn’t cover it, your assets are exposed. To prevent this from happening, people buy umbrella policies to give themselves extra protection. This way, your home, vehicle, and checking accounts do not have to be liquidated.

Umbrella insurance is also a good investment for:

  • Families with young drivers, pools and/or dogs
  • Landlords that need to maintain safe properties
  • Business owners
  • Affluent families and individuals

Umbrella insurance in NJ is often more affordable than people realize. Contact Soden Insurance for a free quote on umbrella coverage.