When you are considering NM insurance for your auto or home, you may want to add personal umbrella insurance. Umbrella insurance is designed to step in when the limits of other policies are not enough to cover the actual damage and costs associated with an accident. For example, if you cause a car accident and the victim’s medical bills exceed the limits of your auto coverage, umbrella insurance would cover the remaining costs.
Who Needs Umbrella Insurance?
In short, everyone can benefit from umbrella insurance. However, certain individuals are in high-risk demographics, and these should especially consider umbrella insurance. For example, homeowners who have a swimming pool have risks that exceed normal homeowners coverage.
What Does Umbrella Insurance Cover?
Umbrella insurance covers any liability that other policies do not. If you are at fault in an auto accident that results in death, you could easily face legal fees and judgments of over a million dollars. Most auto liability policies do not cover this much. An umbrella policy picks up where the liability coverage from your other policies leaves off.
What Are the Benefits of Having Umbrella Insurance?
The primary benefit, aside from the practical advantages described above, is peace of mind. You know that your NM insurance covers all eventualities and that should you be liable for an accident, you are fully covered.