Important Upfront Facts to Know When Buying Umbrella Insurance

1. Important Upfront Facts to Know When Buying Umbrella Insurance By: Nikki Kardar - Farmers Insurance Agent

2. http://nikkikardarinsurance.com/ Life is unpredictable, and no matter how much you plan to keep yourself protected from the uncertainties of the future, there’s always something around the bend that never crossed your worried mind. You may think that this could never happen to you, but sometimes you do have to prepare for the worst. This is where an umbrella insurance policy will come in handy as it protects you and your family from any financial adversity – just like an umbrella protects you from the rain.

3. What is Umbrella Insurance?

4. Umbrella insurance is a special type of insurance that provides you with additional coverage when the liability limit in your current policies are maxed out as a result of claims. The main purpose of your umbrella insurance policy is to protect your assets from an unforeseen event. This single policy acts as an “umbrella” over all your other personal liability policies, including home, car, RV, auto, etc., giving you a higher personal liability limit than what would otherwise be available.

5. What All It Covers?

6. Umbrella Insurance only covers certain third-party lawsuits, including: • Others’ bodily injury or accidents on your property • Property damage • Copyright infringement • Reputation damage • Others’ funeral costs • Your legal defense costs • Wrongful eviction

7. What does it not cover? As mentioned above, Umbrella Insurance benefits can only pay for certain lawsuits. So, here are some of the major expenses and liabilities your Umbrella Insurance won’t cover:

8. Professional mistakes your business makes (covered under Professional Liability Insurance) • Employee workplace accidents (covered under Workers’ Compensation Insurance) • Damage to your own business property (covered under Commercial Property Insurance) • Data breaches, crimes, and employee dishonesty (covered under Cyber Liability Insurance) • Employment disputes (covered under Employment Practices Liability Insurance)

9. How Umbrella Insurance Works Let’s explain this with an example: Suppose you run a red light and accidentally bump into another car. There is significant damage to your car, and several people are injured. Repairing your car would cost you around $50,000, and the treatment of the injuries would go beyond $250,000. Plus, the driver of the other car is an orthopaedist who won’t be able to run his treatment center due to a broken leg and sues you for $200,000 in lost earnings. You’re on the hook for a grand total of $500,000. Let’s say, you carry only $200,000 liability coverage with your car insurance, the remaining $300,000 will have to come out of your pocket. But, if you have umbrella insurance, it would pay the difference between what your primary insurance covers and what you still owe.

10. Get Started on Selecting the Right Umbrella Insurance Policy for Your Needs and Risks Knowing what you are getting yourself into and what is going to be covered is critical when purchasing an umbrella policy. So, make sure you find the right coverage by consulting an expert like Nikki Kardar – a certified and experienced farmers’ agent in Yorba Linda, CA who can customize your coverage for your needs. So, what are you waiting for? Contact Nikki Kardar today to get the personalized coverage you need! To know more, visit http://nikkikardarinsurance.com/ If you prefer to talk to us in person, just give us a call at (818) 264-3344 You can also find us on Facebook Twitter Google Plus