The Need for Umbrella Insurance


In today’s busy life, we are all prone to make a mistake or an accident, and some of them might not even be in our control. Most of us use a liability insurance policy to protect ourselves from the financial harm that could arise from these mistakes, accidents, and even some disasters. While these liability insurance policies provide a small safety net for us, they might not be enough in today’s aggressive world. For example, your dog could bite your neighbor and he might decide to sue you because of the same. While the liability insurance would cover his medical costs, it might not be enough to cover an aggressive lawsuit. To protect yourself from this excess harm, NY Insurance Hub, one of the Best Umbrella Insurance in New York, NY Insurance Hub, states that you need to opt for umbrella insurance.

Umbrella Insurance

Umbrella insurance, often referred to as ‘excess liability insurance’, can provide cover to major financial harms that your liability insurance might not be able to provide. Umbrella insurance can provide excess liability for different types of policies including auto policies, watercraft policies, and homeowners’ policies. NY Insurance Hub states that some of the common instances where umbrella policies can be used for additional safety include

Auto Accidents – Since the financial costs that are associated with an auto accident vary on a case-by-case basis, it is important to keep yourself safe from excess financial harm. The umbrella insurance can help you provide coverage for huge medical bills, repair costs and lawsuits that might come as a result of an auto accident.

Boat/Yacht Accidents – If you own a boat, yacht, or boat rental company, it’s important to be aware of your watercraft coverage. As the owner of your watercraft assets, you might not be able to cover all damages that arise in a watercraft accident. However, umbrella insurance can help you provide sufficient coverage to cover the financial harm that can arise in a watercraft accident.

Structural Damage – Property damage can be expensive. In the event of a natural disaster like a storm or hurricane, the property damage that your home might sustain can be catastrophic. Since liability insurance might not be enough to cover the damages, you should look to purchase umbrella insurance.

Legal Liability – Lawsuits have become common in today’s world as a growing number of people are looking to take advantage of all your mistakes or accidents. If you’re found liable for a lawsuit, it might be difficult to pay for the costs associated with the settlement or the legal proceedings. An umbrella insurance policy can provide a means to pay for them and help protect yourself.

Coverage Benefits

From these few examples, you can clearly see that an umbrella insurance policy can be highly helpful. But you might be wondering about how it works. Umbrella insurance typically adds to your liability limits. Whenever you hit your liability limits, the umbrella insurance plan covers the remaining costs. In fact, some of the best umbrella policies expand the coverage of the base insurance policy. Some of the additional coverage they provide include:

·         Coverage for Defamation and Slander

·         Coverage for False Arrests and Imprisonment

·         Coverage for Wrongful Eviction

·         Coverage for Malicious Prosecution

If you are looking to get the best benefit out of umbrella insurance, you need to look for policies that offer the best cover. If you are looking for more assistance you can reach out to NY Insurance Hub and get tailor-made NY insurance quotes.

Who Absolutely Needs It?

Typically, umbrella insurance provides great benefits to people who have a lot of assets or properties. The insurance policy can also help people who are highly likely to be sued. For example, doctors, lawyers, and clergymen. These professionals are often highly sought after in court, and they might face substantial legal fees if they are involved in an accident. However, that doesn’t mean that everybody else doesn’t need it. Umbrella insurance can help you if

·         You serve on a board.

·         You manage a trust.

·         You are a landlord.

·         You are a coach.

·         You own things that can lead to injuries like swimming pools, guns, trampolines, etc.

·         You employ inexperienced driver(s).

·         You regularly post product or business reviews.


Points of Interest

One of the important points to note is that you need to have a sufficient amount of liability insurance, i.e. home/property insurance, auto insurance, watercraft insurance, etc., to add umbrella insurance. This is because umbrella insurance is designed to give you an added liability coverage for things that your liability insurance policy does not cover.

It is also important to select the right coverage amount when you are purchasing an umbrella insurance policy. One of the things that you need to consider before purchase is the value of your existing assets and properties. This is important because the greater the number of your assets and properties, the higher the level of insurance coverage that you need to purchase. If the umbrella insurance does not cover at least the value of your total assets, you might risk losing part of your asset in the case of a lawsuit or disaster.

It is also important to consider your future income potential as it could play a vital factor especially in the case of lawsuits. So, it is important to not use your current limited income as a basis for determining the coverage amount. For example, if you are a law or medical student, your future income potential will be higher. Therefore, it is important to consider the future while determining the coverage amount.

From the points mentioned above, you can clearly see that umbrella insurance is immensely beneficial. However, you might still be having reservations because you might be thinking that an umbrella insurance policy will be expensive, but it is not. In fact, NY Insurance Hub, which provides the best umbrella insurance in New York, states that umbrella insurance is highly affordable and valuable because of the amount of protection it offers.

If you are looking to protect yourself from excess financial harm, you can contact NY Insurance for personalized quotes.  

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