Should Renters Get an Umbrella Policy?

When it comes to insurance, many renters may overlook the importance of an umbrella policy, especially since their standard renters insurance often covers the basics. However, an umbrella policy could provide crucial additional protection that renters might not even know they need. 

Here's why it’s worth considering.

What is an Umbrella Policy?

An umbrella policy is an extra layer of liability coverage that goes above and beyond the limits of your standard renters insurance. It provides additional protection if you're involved in an incident that exceeds the liability coverage offered by your renters policy. Essentially, it acts as a financial safety net for situations like accidents, lawsuits, or damage to others' property that could leave you financially exposed.

Why Should Renters Consider an Umbrella Policy?

1. Protection Beyond Basic Coverage Your standard renters insurance typically covers things like personal property damage, theft, and some liability if you're at fault for an injury to someone else. But there are limits. For example, if someone is injured in your apartment, or if you accidentally cause damage to another person’s property (say, flooding a neighbor’s unit), your renters insurance may not cover the full cost. An umbrella policy offers extra protection to cover these types of situations.

   
   

2. Cost-Effective Peace of Mind The great thing about umbrella insurance is that it’s relatively inexpensive compared to the amount of coverage it provides. For just a few extra dollars a month, you can secure an additional $1 million (or more) in liability coverage. Given the low cost and the peace of mind it brings, it’s often considered a smart financial decision.

   
   

3. Coverage for a Range of Incidents An umbrella policy is not limited to just incidents within your home. It can also extend coverage for things like accidents that happen outside your apartment — whether you're on vacation, at a park, or even on the road. If you’re sued for slander, libel, or negligence, an umbrella policy can help cover legal fees and damages.

   
   

4. Unpredictable Accidents Happen Life is unpredictable. Accidents can happen at any time, and many people don’t realize the financial risks involved until they’re too late. A simple situation, like someone tripping over your rug and getting injured, could lead to a costly lawsuit. For renters who want to protect themselves and their assets from unexpected events, an umbrella policy offers invaluable support.

   
   

Is an Umbrella Policy Right for You?

While umbrella policies are not a necessity for everyone, they can be a great option for renters who want to ensure they’re fully covered in a variety of circumstances. If you live in a high-traffic area, have visitors often, or have a pet you may want to consider it. Similarly, if you own valuable possessions or regularly participate in activities that increase your liability risk, an umbrella policy can give you that added protection to live more and worry less.

If you're interested in learning more about umbrella policies and whether they're right for you, reach out to us! 

You can #CountOnCush to help you navigate your insurance needs and find the best coverage for you.