From childhood, there are things you have grown believing that they are true only to discover they were all but myths in your adulthood. The same goes for umbrella insurance. Yes, you are an adult, but certain myths can crowd your judgment when shopping for umbrella insurance in Mount Prospect, IL. For this reason, Com-Co Insurance Agency Inc. shares common umbrella insurance misconceptions to be wary of.
Myth#1: Umbrella insurance is for the wealthy only
While it’s true, one of the categories of people that need umbrella insurance are those with significant assets, other people need this coverage, too. Umbrella insurance is ideal for everyone earning a livelihood. Since we all stand a chance of being sued, umbrella insurance becomes a must-have investment when the limits of typical liability coverages are exhausted.
Myth#2: Umbrella insurance is a stand-alone policy
Umbrella insurance isn’t offered as a stand-alone policy. It rides on other coverages such as home, boat, or auto policy. Umbrella insurance works by boosting typical coverages. For instance, you may add umbrella insurance as a rider on your home insurance coverage to increase its liability coverage.
Myth#3: Umbrella is expensive
Ask many people why they don’t have umbrella insurance, and they will tell you it’s because it’s expensive. But is that true? Although umbrella insurance doesn’t come free, its cost is manageable for most people. While the premium you pay depends on the level of risk, it will surprise you that a $200 premium can get you $1M worth of coverage! Is that really expensive?
Myth#4: Umbrella covers you and your assets
Wrong again! Umbrella insurance doesn’t cover you. It protects you against wrongs you do to others. For instance, if you cause a severe accident, your auto insurance will cover your vehicle and medical expenses for your injuries. However, umbrella insurance handles liability costs from third parties, exceeding your auto liability coverage.
Umbrella insurance in Mount Prospect, IL
Still need more information on umbrella insurance? Please contact Com-Co Insurance Agency Inc., and one of our agents will be pleased to answer any question you have.