Is It True That Umbrella Insurance Is Just for the Rich?

At DJ Kauffman Agency, we always receive these questions from our Hutchinson, KS clients: Do I need umbrella insurance? Isn’t umbrella insurance for the rich and famous? Well, most people understand that umbrella insurance offers extra liability protection to their home, boat, and auto insurance. However, many don’t understand who needs this type of insurance. Regrettably, many people think that umbrella insurance is just for the wealthy. While that may be true, it’s not always the case. In this blog, we will try to explain why anyone that has a livelihood needs umbrella insurance. 

What does umbrella insurance cover?

Umbrella insurance is extra liability protection that protects your assets and earnings from significant financial claims exceeding the limits of your conventional insurance coverages. Umbrella insurance is likely to cover you against the below:

  • Bodily injuries caused to others
  • Property damage to third parties
  • Personal liabilities like libel and slander
  • Pays for legal costs

It’s worth noting that umbrella insurance covers other people and not damages or injuries to you. For instance, if you are involved in an auto accident, your car’s damage is covered by your collision coverage. However, bodily injury, property damage, and legal suits from the other driver (exceeding your auto insurance limit) are paid by umbrella insurance.

Who needs umbrella insurance?

In America, anyone can be sued. In light of this, you may need umbrella insurance if you are at risk of being sued. Lawsuits can be expensive and can wipe out your assets and savings, especially when the legal case is ruled against you. That said, if you are in the below categories, you need umbrella insurance as soon as possible. You need umbrella insurance if you:

  • Own property like a home, boat, or vehicle
  • Coach kids or youth sports
  • Participate in high-risk hobbies like hunting or skiing
  • Have a dangerous pet
  • Have strong opinions on social media
  • Have significant assets
  • Are a volunteer in a charitable organization

As you can see, umbrella insurance isn’t just for people who have a lot to lose. Umbrella insurance is suitable for anyone at the risk of being sued.

Get umbrella insurance today!

Are you looking for umbrella insurance in Hutchinson, KS? Please get in touch with DJ Kauffman Agency for an affordable quote.