Is Umbrella Insurance Worth the Cost?

Insurance of many types can help in "rainy day" situations when things go wrong. And umbrella insurance is perfectly named because it definitely helps with those "rainy day" situations. But is getting that type of insurance really necessary and worth the cost? The short answer is "yes." And here’s why.

Cost of Umbrella Insurance

Umbrella insurance is surprisingly inexpensive, especially in light of the benefits. Because it is typically sold in $1 million increments, $1 million is in many instances the least expensive investment in umbrella insurance. But the cost for that type of coverage can be as low as only a couple hundred dollars per year.

What Umbrella Insurance Covers

Umbrella insurance covers various issues that are not covered by other types of insurance. Here are a few examples:

  • Umbrella insurance provides additional coverage when there is a claim involving your home. Although you have homeowners’ insurance, your policy doesn’t provide adequate coverage. Your umbrella coverage kicks in.
  • A car accident occurs that involves a great deal of damage, and your liability insurance coverage is not adequate. Umbrella insurance steps in to help make up the difference.
  • An issue comes up that might not seem typically related to certain insurance policies. Those issues include ones like libel and slander, and umbrella insurance helps out.

Those are just a few of the many situations with which umbrella insurance can help. There are many more situations in which umbrella insurance can help.

Why It’s Worth It

When you compare the minimal cost of umbrella insurance with all of the benefits, plus the peace of mind gained, making the choice to obtain umbrella insurance is the obviously wise one.

Southwest Insurance Center serving Austin, TX would be happy to tell you more about umbrella insurance and help you navigate the questions and concerns you might have. Just give us a call to let us know how we can help.