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How to Protect Your Home and Business with Umbrella Insurance

June 11, 2011 | Guest Post | Insurance | No Comments

If you currently have insurance coverage for your home or business, there is a portion of that insurance coverage known as liability insurance. Chances are the liability insurance that is included in your policy has limits. This means there is a maximum on what your liability insurance will cover. Sometimes this coverage is not enough to cover all costs of legal issues, and that is where umbrella insurance comes in handy. Umbrella insurance provides additional coverage above and beyond what is covered under your normal insurance policy. In today’s world, it is a very smart idea to carry umbrella insurance on your home or business.

Protecting Your Home

In many homeowners insurance policies, there are gaps in coverage that may pose problems should a claim arise. These gaps in coverage mean that certain things may not be covered under your regular homeowners’ policy. There are likely liability coverage limits on your homeowners’ policy as well. This means that even if a claim arises and is covered under your policy, there may not be enough money available to cover all of the legal costs that go along with it. Umbrella insurance kicks in where your regular insurance policy leaves off, making it an extremely valuable investment.

Say an accident takes place on your property and someone is injured. Will your current insurance policy be able to cover all of your legal expenses, as well as the injured person’s legal and medical expenses? The answer is probably no. That means that your assets and future earnings could be at stake if your current insurance policy is inadequate. The price of an umbrella insurance policy is really not that much compared to the lifelong issues you could face without one.

Also, some houses may pose more of a risk than others. For example, older houses often carry more of a risk than newer ones. This is because electrical systems, windows, and stairs in older homes are often outdated. Additionally, households that have dogs, specifically large or dangerous breeds, may also carry a larger risk than households with small dogs or none at all. Umbrella insurance is a wise choice if you have an older home or dogs that may cause injuries to others.

Protecting Your Business

If you own a business, you know that liability insurance coverage is extremely important. This is because there are so many areas of liability in the world of business. Although you probably have general liability coverage on your business, it may not cover the entire amount if a claim is filed against you. Even if you are a business with product or professional liability insurance, these will not always cover every situation or claim. Umbrella insurance is especially important for businesses to carry because of the increased risks and liability.

For example, your business may use dangerous machinery on the premises. This machinery can pose a major risk to employees or anyone that comes into your business. Should an accident occur, will your regular liability insurance offer enough protection and coverage for the claim? There is a good chance that it will not. This is where an umbrella insurance policy would come into play and offer that extra level of protection.

Even if you have insurance for your home or business, the coverage that is included in your policy may not always be sufficient. Umbrella insurance offers additional coverage and kicks in where many policies leave off. It can be a lifesaver in many cases, and is almost always worth the small amount of money it may cost you.

Guest post from Bailey Harris.





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