Umbrella insurance is a policy that offers additional coverage. It extends over the base insurance limits of your basic insurance policy. This stand-alone type of insurance policy can be purchased and used for various purposes, personal or business. Some of these policies can offer purely excess coverage and protection. Others are used to fill in the gaps of the underlying insurance, such as those that fall under the limitations, conditions and exclusions. An online umbrella insurance quote can shed light on how much these policies cost and what they cover.
Understanding Online Umbrella Insurance
A lot of people have encountered the term umbrella insurance. But many of them don’t know what is or what is it for. This is because it sounds too technical. To help you have a deeper grasp of this term, we will try to explain and illustrate it in layman’s terms as much as possible.
Basically, an umbrella policy serves as a backup, a reserve. It is something that you keep for the rainy days. You never know when you will need one, so it’s best to have one on stand-by. For example, if your base coverage runs out due to an unexpected claim or a lawsuit, and you don’t want to spend from your own pocket or if you don’t have emergency funds for such, then you can always get covered by the umbrella policy. Although there’s no telling when you will need this policy, it can be a big help when the time comes. It functions as a life-saver during times of need.
Why an Umbrella Policy Is Important
Many people take this insurance for granted. They think of it as something unnecessary and undervalued, and so don’t take the time to get an online umbrella insurance quote. To them, it holds not much value in protecting your financial health. People tend to think that they are fully insured, that there’s nothing to worry about, that everything’s covered. Being under-insured or too confident can be dangerous. You need more risk management and financial planning than you can imagine.
Facts do not lie. Statistics shows that a lot of people have become financially ruined just because they are under-insured. Don’t rely too much on your base insurance policy alone. At the end of the day, it is you who will benefit from the umbrella insurance you purchased.
Misconceptions About Umbrella Insurance
People have an erroneous understanding or idea about umbrella insurance policies. And the explanations given by some insurance professionals are partly to be blamed for this. There is not much discussion about what umbrella insurance actually does and why is it important. Professionals simply say that it’s an extension of the base insurance coverage, or that it’s perfect for home and auto policies, or that it is only for people with assets. These statements, particularly the last one, send a wrong message to the insurance holders. Umbrella policy is complex and confusing, so it’s important to simplify it to the average consumer as much as possible. However, umbrella insurance policies must not lose its meaning and real purpose in the process.
Saying that this insurance policy is only for people with assets is misleading. Although people with assets need it more, it nevertheless is necessary for everyone. Yes, even people who don’t have assets need it and should get an online umbrella insurance quote. Some people tend to counter this with statements like “why would I need insurance if I don’t have assets to protect?”
But people forget that assets are not just money or investments. Assets cover everything, from your car and house to your electronics and your belongings. Everything and anything you own are assets. And if you are under-insured and something bad happens, you might end up losing them. You wouldn’t want that to happen, do you?
We understand that you might be on a tight budget and you don’t want to spend on things that you think you don’t need, such as an extension coverage. But think of the possibilities. Always store something for the rainy days. Life is full of surprises. You don’t have to suffer financially if you are insured.
Online Umbrella Insurance Quote
Umbrella policies are not as expensive as you think. It’s a great way to protect your assets, be it a house, a car or others. Don’t put your hopes solely on your base insurance policy. You need more than just the basics, with or without many assets. Get an online umbrella insurance quote from us today.