What is Umbrella Insurance? Does the Average Person Need It?

At Collum Insurance Group LLC, we can provide Richardson, TX, businesses with the kind of high-quality umbrella insurance policies that they need to avoid long-term financial troubles. However, do you need this type of policy if you’re an average person? Let’s take a look to understand more.

What is Umbrella Insurance?

Umbrella insurance is a unique type of liability coverage that kicks in when your standard policy gives out. For example, if you are successfully sued for more money than your typical business coverage provides, umbrella insurance will pay the difference up to your coverage limits. 

Most businesses have some kind of umbrella policy because it’s too beneficial as a way of protecting their short- and long-term liability problems. However, someone who doesn’t own a business may even be interested in this type of coverage. But is it strictly necessary for the average person?

Does the Average Person Need This Coverage?

Unless you anticipate ever needing a high amount of liability coverage, you probably don’t need umbrella insurance. However, if you’re a business owner or someone who plans to open a new firm soon, you might want to consider high-quality umbrella insurance seriously. 

Doing so will provide you with a high level of protection, minimizing the kind of devastating impact you may otherwise experience. But, beyond that, it can serve to give you a better level of protection that should reduce the amount of money you have to spend on lawsuits. 

How We Can Help 

If you think you want an umbrella insurance policy from Collum Insurance Group LLC, call us today to learn more. We serve the Richardson, TX, area and can help educate you about what types of insurance are suitable for your needs and which you may be able to ignore or not purchase.

Umbrella Insurance – What is it and why do you need it?

Think of umbrella insurance as a rainy day fund – hopefully, you never need it, but when you do, you’ll be glad you have it. With litigation becoming more common in the United States for even the most innocuous situations, it is imperative to have enough liability coverage to protect yourself, your family, and your assets from being depleted in a lawsuit. Luckily, that’s where umbrella insurance comes into play by providing another layer of liability coverage when your existing auto, homeowners, boat, and commercial insurance policies have been met. 

To determine whether you need umbrella insurance, ask yourself the following questions:

  • Do you have a high net worth?
  • Are you recognizable in the community as being wealthy?
  • Are you vulnerable to lawsuits because you own an ATV, swimming pool, or have a dog breed that is labeled aggressive?

If your answer to any of these questions is yes, you should consider purchasing an umbrella insurance policy. One benefit of umbrella insurance is that it covers the policyholder and other family members or people in the household. This means that if you have a new driver in the household, you’ll have extra peace of mind knowing that your umbrella insurance covers them wherever they are driving a vehicle. Additionally, umbrella insurance coverage does not have to involve your property, boat, or vehicle and is extended worldwide except for any vehicles and homes you own globally that are under another country’s laws. 

At Collum Insurance Group LLC in Richardson, TX, we’ll help answer any questions you have on umbrella insurance policies and help you customize a policy that works for your family’s needs. Give us a call today to schedule a no-obligation consultation with a friendly and knowledgeable member of our team.