Do I Need Umbrella Coverage?

Umbrella insurance is optional coverage that supplements your basic auto, homeowners’, and other insurance coverage. It can protect your income and assets if you are at fault for an accident.

When you shop for any type of insurance, your primary consideration is whether it will meet your needs. Basic policies might be sufficient for relatively minor accidents. However, if you are in a collision that causes severe injuries or even death, any personal injury claim may exceed your standard policy’s limits. An umbrella policy can help you pay for any liability over your standard policy’s limits.

The Terry Law Firm has provided this helpful overview of umbrella coverage and how it can help. If you were involved in an accident and have questions about potential liability and insurance coverage, contact us to speak with an experienced Morristown car accident lawyer.

What Is Umbrella Coverage?

What does “umbrella insurance” mean? As the name suggests, an umbrella policy is a policy that provides additional coverage over the standard auto or homeowners’ insurance policy. It kicks in when your other insurance policies fail to provide complete coverage to pay a legal claim. If the claim exceeds the limits of your policy, umbrella insurance covers the gap between the policy’s limits and the claim amount.

Umbrella insurance differs from excess liability insurance. The latter increases the ceiling of your pre-existing liability coverage. However, umbrella insurance goes further by also providing protection for circumstances not covered by your standard auto or homeowners’ policy. It can provide coverage worldwide and on rental vehicles and even pay the legal costs of defending a claim, for example.

Why Would Someone Need an Umbrella Policy?

Who needs umbrella insurance? Anyone should consider an umbrella policy if they need an additional layer of protection in case they are exposed to potential liability due to a severe accident. An umbrella policy can give you valuable peace of mind that your assets will not be on the line if you face a large judgment.

Does umbrella insurance cover lawsuits? If you have a significant amount of income or own assets of substantial value, such as real estate, it is especially important to protect them if you are sued. Without umbrella coverage, your assets could be exposed to collection activities that could continue for years until you pay a judgment in full.

Under What Circumstances Is an Umbrella Policy a Good Idea?

Why have an umbrella policy? Is umbrella insurance worth it? If your net worth exceeds your insurance’s policy limits, you may want to consider an umbrella policy. If you experience a higher risk of liability because of your travel routine or participation in dangerous activities, you may want to consider an umbrella policy.

Contact Our Experienced Tennessee Personal Injury Lawyers Today

The Terry Law Firm understands how important it is to protect your valuable assets. Umbrella insurance goes beyond the coverage provided by your standard auto and homeowners’ policies.

We also know how important it is to protect yourself after an accident. If you’ve been hurt and believe someone else is to blame, contact us today for help from our experienced legal team. The Terry Law Firm: “A Family Tradition of Legal Services Since 1960.”