The older we get, the more our assets grow: large homes, second homes, income properties, investments, etc. You undoubtedly want to protect your assets and financial wealth in the event of a lawsuit that exceeds your current liability insurance policy! That’s why Assurances Multi-Risques would like to tell you more about excess liability insurance for individuals, commonly known as umbrella insurance. And dear entrepreneurs, we haven’t forgotten you: we’ll be publishing an article on excess insurance for businesses soon.
Why do individuals need umbrella insurance?
The primary purpose of umbrella insurance is to increase and extend your basic liability insurance limit for both your home and auto insurance. So imagine that you set fire to your rented condo in Florida, causing $4 million in damage… Your home insurance coverage may not cover the entire cost! However, if you have umbrella insurance, it will cover the difference. Assurances Multi-Risques strongly recommends that people who travel a lot have umbrella insurance to increase their civil liability limit and, in doing so, protect their financial assets.
Umbrella insurance also serves to cover certain “gaps” that you may have in your civil liability insurance policy. For example, personal injury (moral damages), which is usually excluded from this type of coverage, is covered by most excess insurance policies. So, for example, if your son or daughter makes false accusations of sexual assault against their hockey coach, you could be sued because your child is included in the definition of the insured. This type of lawsuit can be very expensive, but fortunately, your umbrella insurance will cover you.
Similarly, umbrella insurance would also cover you if the organization where you volunteer on the board of directors were sued for mismanagement. Although many non-profit organizations have directors and officers insurance, few have it for their volunteers.
Umbrella insurance, insurance for everyone!
Don’t think that umbrella insurance is only for multimillionaires! It’s for everyone and covers assets such as your boat, second home, investment property, or various investments accumulated over the years, as well as protecting you against potential lawsuits.
In short, investing in umbrella insurance is inexpensive, especially when you consider all the costs it can help you avoid. We therefore recommend that you contact an independent insurance broker who can provide you with more information on the subject and analyze your needs, but above all, ensure that your financial assets are protected!