5 reasons umbrella insurance is a good idea

We do our best to plan for the future, but sometimes life throws a curveball that's more than a standard insurance policy can handle. That's where umbrella insurance comes in. It's extra protection that can be added to your existing car or home insurance policy to provide a safety net for when your standard coverage isn't enough. Simply put, it's insurance for your insurance.

Is it worth it? Absolutely. Here are five reasons why adding umbrella insurance to your existing policy is a smart decision.

1. It provides broad coverage at an affordable price.
   While policies vary, adding umbrella insurance to an existing policy is cheaper than you might think. Sometimes called personal liability insurance, umbrella coverage adds a large amount of extra liability protection for just a fraction of the cost of your primary policy. It acts as backup coverage for any remaining expenses when your car or home insurance falls short—which means you could be saving money in the long run.
2. It fills the gaps in your standard policy.
   Umbrella insurance provides an extra layer of protection to help you cover big costs when your standard insurance policy payout isn't enough. Standard auto and homeowners insurance policies have limits—the maximum amount they'll give you for a claim. So if you get into an accident and the damages exceed those limits, you could be on the hook for the rest. An umbrella policy protects you beyond those limits. It can also cover things that your current policies don't fully handle, such as libel or slander, false arrest, and some types of personal injury claims.
3. It protects your current and future assets.
   Accidents happen. But risking your financial future because of an accident doesn't have to. That's why it's so important to plan ahead and put the right amount of protection in place to prevent a bad day from draining your retirement savings. Simply put, the more things you own, the more coverage you'll need to make sure you don't lose them.
4. It's extra helpful for those at higher risk.
   Almost everyone can benefit from having umbrella coverage added to their policy, but it's especially valuable for people with higher risk factors. These include things like significant assets, a high income, a business, a rental property, a pool or trampoline, a teen driver, or even certain dog breeds.
5. It covers legal defense costs.
   Even if you're found not at fault, a lawsuit (and all the legal expenses it comes with) isn't cheap. Lawyers, court costs, and other unexpected legal fees can add up quickly. Having umbrella insurance can help protect your finances while the case is being resolved. It will cover your legal defense costs, allowing you to focus on more important things.

Don't wait for a crisis to start planning ahead. Hope for the best but prepare for the unexpected—even if it seems like “it won't happen to me.” Sometimes it does, and that's when having the right coverage makes all the difference. Consider adding umbrella insurance for extra protection and peace of mind.

5 important questions to ask your insurance agent and why

Don't let your policy leave you exposed—ask your agent these five essential questions to make sure your insurance actually protects you.