Umbrella insurance isn’t difficult to understand. In the simplest sense, it protects your assets. This fact makes it easy to understand that umbrella insurance is designed to protect people who actually have assets that they want to keep from being seized or taken away if they are sued. Umbrella insurance is designed to protect people’s assets. The Redden Insurance Agency wants to help consumers navigate umbrella insurance by helping them to understand who this insurance is designed for and how consumers who invest in this insurance can benefit.
The Nuts and Bolts of Umbrella Insurance
Umbrella insurance is secondary insurance that kicks in when the limits of your primary insurance have been met. This insurance provides protection to you and your property in the event that you’re found guilty or responsible for something that happened on your property, in your car, or as a result of some action that you took. This insurance is designed to protect people who have assets that they wouldn’t want to be seized in the event that you’re found guilty of something. An added benefit is that this insurance also compensates you if you’re not found responsible for some unfortunate event. This insurance kicks in and pays legal fees in situations like these.
Who Should Invest?
You don’t need to be rich to invest in umbrella insurance but you should have at least a few assets that have some significant value. Conversely, if your net worth is relatively low and you don’t own a home, umbrella insurance may not be a necessary investment for you. However, if you fall on the other side of the equation, umbrella insurance may be a worthwhile investment. This type of insurance can even protect your income from garnishment if you’re found guilty of something. This is one of the reasons why business owners fit into the group of people that can benefit greatly from this form of insurance. A million-dollar policy is usually adequate for most people and is fairly inexpensive as well. If you are someone who has a significant net worth and owns a lot of things you may need more than a larger umbrella policy. At the Redden Insurance Agency of Bradley WV, were here to help you navigate the mechanics of umbrella insurance and help you make a beneficial choice. Give us a call.