Most people are aware that they require insurance to protect their homes, cars, and health. However, far too few people understand the value of umbrella insurance. Umbrella insurance protects you against major liability claims and lawsuits, which can quickly deplete your savings and assets. If you’re considering buying umbrella insurance, Great Southern Agency in Tomball, TX can help guide you on five mistakes to avoid.
Umbrella Insurance: Mistakes To Avoid
1. Not Understanding What Umbrella Insurance Covers
Umbrella insurance is intended to protect you from large liability claims and lawsuits. It usually covers expenses for bodily harm, property damage, and certain personal liability situations. However, umbrella insurance does not cover everything; be sure to read the fine print to understand what is and is not covered.
2. Not Reading The Fine Print
When purchasing umbrella insurance, it is critical to carefully read the policy to understand what is and is not covered. If you have to file a claim, you may be faced with unexpected out-of-pocket expenses.
3. Buying The Wrong Amount Of Coverage
Many people underestimate how much umbrella insurance they require. A good rule of thumb is to purchase coverage equal to 1-2 times your net worth. This ensures that you are adequately protected in the event of a major liability claim or lawsuit.
4. Lying Or Omitting Important Information
It is critical to be truthful about your assets and income when applying for umbrella insurance. If you lie or omit critical information, your policy may be voided if you need to file a claim.
5. Going With The First Policy You Find
Before purchasing umbrella insurance, it is critical to shop around and compare policies. Because not all policies are created equal, find one that meets your needs and budget.
We Are Here To Help!
Umbrella insurance is crucial for financial protection, but only if you avoid these five mistakes. Great Southern Agency can help you find the right umbrella insurance policy for your needs in Tomball, TX. Contact us today for a free quote.