There are so many types of insurance. For example, there is life insurance, home insurance, personal insurance, etc. It can be difficult to understand what types of insurance you need and which types you do not need.
In this video, you will learn about umbrella insurance and why it can be helpful.
Umbrella insurance is a form of general liability insurance. It covers most liability claims on top of your preexisting insurance. For example, you may get in a car crash and you are at fault. If this is the case, your auto insurance will cover the liability cost of the other car in the crash. This is all well and good until that other car is a super car that is super expensive. This is where umbrella insurance comes in. It will cover whatever your auto insurance couldn’t cover. This is the same for if someone were to injure themselves on your property. As you can see, umbrella insurance is extremely useful.
The next question is, how much umbrella insurance do you need? Well, umbrella insurance is extremely cheap. Several hundred dollars can get you over a million dollars in liability coverage. Generally, this is all you need. However, if you own valuable assets or own a business, you could bump this up to five million. It is rarely ever recommended to go over 5 million.