Protecting yourself and your assets should be something you view as a priority. One of the best ways to accomplish this goal is by choosing the right insurance policies. There are a number of insurance policies on the market designed to help the average consumer avoid financial ruin following an accident.
An umbrella insurance policy is something the average consumer knows very little about. A very small section of the population actually has these policies in hand. In short, this personal liability insurance policy protects you if you’re sued for a large sum of money.
These hefty lawsuits usually come after significant damage is done during an accident. An umbrella policy will settle the costs not covered by personal property, home or auto insurance. Investing in an umbrella insurance policy is a good idea and here are some reasons why.
1. Protect Your Savings and Other Assets
Most people work very hard to build wealth. Achieving your wealth-building goals can be both a blessing and a curse. Unfortunately, some individuals view people with wealth as targets. In some cases, wealthy people feel like they are walking around with targets on their backs.
If you can afford the extra coverage provided by an umbrella insurance policy, you need to take action. By doing this, you can protect your savings and other assets from lawsuit-happy people. With this protection, you can avoid being ruined financially after an accident.
2. You Have Investment Properties
Over the past few years, many people have entered the world of real estate investing. As you acquire more investment properties, the chance of accidents occurring on one of these assets grows. Rather than being unprepared for these accidents, you must have the right safeguards.
This is where a comprehensive umbrella insurance policy comes in handy. Having the protection of an umbrella policy can help you mitigate the risks associated with owning real estate. If you want to save money on both your property and umbrella insurance, then bundling these policies is a wise move.
3. People With Attractive Nuisances Need Umbrella Insurance
Buying a home is something most people view as a top goal. Once you have a home in your possession, you can customize your surroundings. Some homes have what are referred to in the insurance industry as attractive nuisances.
These nuisances generally include things like trampolines and pools. If people in your neighborhood use these attractive nuisances without permission and get hurt, you might be financially responsible. This is why you need an umbrella insurance policy in place if you have attractive nuisances on your property.
4. A Home Full of Inexperienced Drivers
Handing over a set of car keys to a teenager can be a stressful experience. If you have one or more inexperienced drivers in your household, then you can’t underestimate the importance of an umbrella insurance policy. With this policy, you can protect your assets in the event of a car accident.
If you’re interested in investing in an umbrella insurance policy, the Huntington Pacific Insurance Agency team can help.