Insurance is an essential part of living in today’s world. There is insurance for just about everything you can think of, such as home insurance, renters insurance, boat insurance, umbrella insurance, and much more. Umbrella insurance is one of those things that some people have never heard of. It is different from most types of insurance in a few ways. Read on to discover five things you should know about umbrella insurance.

What is umbrella insurance?

Umbrella insurance is an extra type of liability insurance. When your liability limits run out on your auto or home insurance, umbrella insurance can cover the rest of the liability cost.

Umbrella insurance is not for everyone.

While umbrella insurance might be helpful for various people, some people don’t need that extra liability insurance. Umbrella insurance is mainly for people with high-risk factors or a high net worth.

You might need umbrella insurance if

You might need umbrella insurance if you have things that put you at higher liability risk. People these days like to sue, so having umbrella insurance can help in those cases. Some of the things that put you at a higher risk include:

Swimming pool
Trampoline
Dogs
Regularly having people over
Teenage drivers
High net worth

Basic things umbrella insurance covers

Here are some of the basic things umbrella insurance covers:

Lawsuits
Personal liability
Injuries
Property damage

The nice thing is umbrella insurance isn’t specific to any single policy, like your home or auto insurance. It helps when the liability limits run out on your current policies.

Research your options

Like anything else, it pays to research your options before settling on a policy. Premiums, deductibles, and coverage can be different depending on what insurance company you go with. Choose the company and policy that works best for your needs.