What are the Pros and Cons of an Umbrella Policy?

Weigh Both Sides Before You Sign Up

“Hey, Alan! I’m not 100% sold on umbrella insurance. What are the pros and cons of an umbrella policy?”

KEY TAKEAWAYS

  • What are the pros and cons of an umbrella policy? Umbrella insurance is a great investment. But if we’re being honest, it may not be right for everyone. Listed below are the pros and cons of umbrella insurance:
  • The Pros of Umbrella Policies:
    • Increased protection for both legal and financial liabilities
    • Proportionately low costs
    • Coverage gaps are filled in
  • The Cons of Umbrella Policies:
    • They’re an extra expense
    • They can be difficult to calculate
    • They have their limits
What are the Pros and Cons of an Umbrella Policy? - Alan McDaniel Agency

So, you’ve heard about umbrella policies, and you’re not sure if they’re right for you or not. Now you’re left wondering, what are the pros and cons of an umbrella policy and are they even worth the extra expense? All valid. That’s why I’m here to help you weigh your options.

New to this blog series? Welcome! I’m glad you’re here! My name is Alan McDaniel. I’ve been a certified insurance professional for over 20 years, and I love helping people make better insurance decisions for themselves and for their loved ones. In this post, we’ll answer the question that should get asked more often: what are the pros and cons of an umbrella policy? Then, I’ll tell you how you can speak with a licensed insurance professional about umbrella insurance for free!   

 

What are the Pros and Cons of an Umbrella Policy? - Alan McDaniel Agency
What are the Pros and Cons of an Umbrella Policy? – Alan McDaniel Agency

So, you’ve heard about umbrella policies, and you’re not sure if they’re right for you or not. Now you’re left wondering, what are the pros and cons of an umbrella policy and are they even worth the extra expense? All valid. That’s why I’m here to help you weigh your options.

New to this blog series? Welcome! I’m glad you’re here! My name is Alan McDaniel. I’ve been a certified insurance professional for over 20 years, and I love helping people make better insurance decisions for themselves and for their loved ones. In this post, we’ll answer the question that should get asked more often: what are the pros and cons of an umbrella policy? Then, I’ll tell you how you can speak with a licensed insurance professional about umbrella insurance for free!   

First, what is umbrella insurance, and what are the pros and cons of an umbrella policy?

Umbrella insurance is essentially liability insurance that offers coverage beyond the limits of your other insurance policies. Think of it as an insurance policy that steps in to help when your other primary policies can’t step in to help.

So, how do you know if an umbrella policy is right for you? What are the pros and cons of an umbrella policy?

Let’s break it down.

 

Pros: 

  • Umbrella policies offer increased protection for both legal and financial liabilities. From lawsuits to medical bills, umbrella insurance offers financial protection for those worst-case-scenarios. Let’s say a guest is injured in your home, and they may want to pursue damages. An umbrella policy would offer coverage for their medical bills and/or your legal fees.
  • Umbrella policies are surprisingly affordable. You’d be surprised how affordable these policies are. When you sign up for umbrella insurance, the price certainly does not outweigh the coverage!
  • Umbrella policies fill in coverage gaps where your other policies fall short. Umbrella policies are able to step into the limits of your primary policies. Umbrella insurance can protect you from personal injury claims, damaged property claims, certain lawsuits, and personal liability situations.

 

Cons:

  • They’re an extra expense. While umbrella insurance is overall affordable, they still cost money. Any way you slice it, umbrella policies are an extra expense that you’ll have to pay for. You’ll need to evaluate whether or not you’re willing to take on an extra expense for the sake of extra coverage.
  • They can be difficult to calculate. Umbrella policies offer extra coverage. But how much coverage do you need? Well, it depends on your situation. It can be difficult calculating how much coverage you need. You’ll need to work with a trusted insurance professional if you want to make sure you’re calculating your coverage correctly.
  • They have their limits. “Umbrella” doesn’t mean “almighty.” While umbrella policies do fill in coverage gaps, they don’t necessarily fill in all of the gaps. You’ll need to keep that in mind and understand what those limits are before you sign up!

Have questions about umbrella insurance? I’ve got answers!

So, you’ve been wondering, what are the pros and cons of an umbrella policy, right? Then that means you probably have other questions, too. In fact, you probably still have a ton of questions. That’s where I can help! Like I mentioned before, I’ve been a certified insurance professional for over 20 years. I’d be happy to answer all of your questions for free! Request a free consultation with me today, and I’ll help you weigh the pros and cons of umbrella insurance!

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