Should You Get an Umbrella Insurance Policy?
Owning a home entails a long list of duties and responsibilities that you never had when you were still renting. One of the responsibilities of owning a house is getting an insurance to keep yourself protected in case of disaster. While various state laws require homeowners to get insurance for their homes, should you go above and beyond what is required and get an umbrella insurance policy?
As previously reported here on Realty Today, a home insurance is designed to protect homeowners from any liabilities in case of a disaster or an accident. One of the most common causes of homeowner's insurance claims is the wind next to water damage, hail, weather-related water damage, and theft.
While the majority of home insurances being offered to homeowners often cover these kinds of cases, unfortunately, accidents beyond these kinds of cases are not covered by these insurances. This is where the umbrella insurance policy comes into the picture.
According to Realtor.com, the umbrella insurance policy helps protect you from financial ruin in case of an accident that took place at your home or something that you or your family members cause to other people. The outlet notes that this could save you from thousands of dollars in the future because you never know when an accident could take place at home.
For instance, a case can be filed against you should someone slip and fall on your icy driveway. This lawsuit alone can cost you $150,000. To protect yourself from paying this much, getting an umbrella insurance policy is the wiser option.
Fortunately enough, the umbrella insurance policy does not only cover accidents, but it can also cover for material things that you, your kids or your pets destroyed in your neighbor's home.
"So if your son, daughter, or dog accidentally ruins a neighbor's expensive rug, you're covered," said vice president of communications for Insurance Information Institute, Loretta Worters.
An umbrella insurance policy does not cost much, either. The publication notes that the average umbrella liability policy only costs $150 to $300 per year.