Common myths about umbrella insurance you should know

Umbrella insurance is the safety net you run to when your typical liability coverages run out. Umbrella insurance helps you or your business survive when faced with significant liability claims. While umbrella insurance is vital, you are likely to come across misinformation that may crowd your judgment when shopping for coverage. Thankfully, Central Lakes Insurance Brokers of Edina, MN is here to help you avoid common myths about umbrella insurance.

Myth#1: Umbrella insurance is a stand-alone policy

Umbrella insurance isn’t offered as an individual policy. It rides on existing coverages like home, boat, business, or auto insurance. Simply said, umbrella insurance is a rider/endorsement that enhances an existing coverage.

Myth#2: Umbrella insurance is for the wealthy only

You might have heard someone say that umbrella insurance is for the rich and famous only. This preconceived notion is partly true. While umbrella insurance protects individuals with significant assets, umbrella insurance is suitable for anyone earning a livelihood.

We live in a litigious society. And since anyone can be sued, umbrella insurance becomes a must to protect you from significant claims that can wipe out your assets and future earnings.

Myth#3: Umbrella insurance is too expensive

Another myth peddled around is that umbrella insurance is out of reach for most people. Fact check: A research done by Insurance Information Institute shows that it will cost you less than a cup of coffee per day for an umbrella policy of $1,000,000!

Is this too much a cost to protect your assets?

Myth#4: I already have home or auto insurance. I don’t need more coverage

While home or auto insurance is pivotal, it doesn’t protect you when faced with significant claims. Suppose your car insurance has liability coverage of $300,000. If you cause a severe accident, liability claims can exceed $500,000 and counting. Without umbrella insurance, your personal assets could be in jeopardy.

Buy umbrella insurance today!

Read the news today, and you will come across information about someone losing their assets due to expensive lawsuits. The good news is that you can avoid going this route by buying insurance from Central Lakes Insurance Brokers serving Edina, MN and its environs. Contact us today for an affordable quote.