What is Umbrella Insurance—and Why Do I Need It?

Car insurance can be surprisingly complex, but it is a necessary form of risk protection meant to save you from financial ruin in the face of an accident that could require—in many cases—a significant payout, and especially if you are liable. This is important as you don’t want an accident to ruin so many other aspects of your life if for some unfortunate reason you are sued. Often known as a PUP, personal umbrella protection takes over when your other liability limits have been maxed out; with this extra protection, if you are liable for an accident, it means that you have additional funds to pay out for the claim.

You may be considering an umbrella policy if you have significant assets to protect overall, or if you are engaged in business or other activities where you do have to worry more about liability. You may own a home that is worth a substantial amount of money or you may own a business that you would not want to lose due to a liability claim that you could not pay. Obviously, if you have a substantial amount of money saved or put away into a wide range of investments, you might be able to pay additional funds required for a claim out of pocket but in protecting yourself with the umbrella policy, you could save yourself from going broke.

If you travel extensively or will be out of the country a lot, protect yourself against liability. This also goes for individuals who may be involved in professions that are more prone to lawsuits such as sports (especially if they are more extreme and/or if you are coaching), working with animals, and more. One of the most basic examples—and common—would be a car or motorcycle accident. If you had the unfortunate experience to be liable for damage to someone else’s vehicle (which could be significant) and had to pay out beyond the limits of your own insurance for someone else’s extensive injuries (which could require long-term treatment), the cost could be unfathomable. On the flip side of this, of course, is the scenario where you are hit by another driver who has insufficient insurance. It is critical to speak with a skilled car accident attorney as soon as possible so they can deal with the insurance company and protect your interests.

If you or a loved one have been affected by an injury caused by the negligence of others, contact Heintz & Becker today. Our attorneys have helped victims from Bradenton, Sarasota, and all over Florida get compensation for their damages and medical expenses. Call us for a free consultation now at 941-748-2916 or contact us online. We are here to help, and if you cannot come to us, we will come to you.

All blogs are written on behalf of Heintz & Becker for informational purposes. These articles should not, however, be considered legal advice, or in any way responsible for creating an attorney/client relationship.