Why High Net Worth Individuals Need Umbrella Insurance

Why High Net Worth Individuals Need Umbrella InsuranceSince high net worth individuals often have tremendous amount of property and staff, they tend to face a more broad scope of liabilities. Ask yourself this: what if someone was to have an accident on your property, would you be covered? As these risks in addition to customized homes, gardens, guest homes, vehicles and jewelry require a bit more protection than the average homeowners or auto insurance policy covers, a NJ Umbrella Insurance Policy is the best solution to ensure all of your assets are protected. While not every accident can be prevented, this coverage protects against unforeseen events and provides additional peace of mind for you.

What is an Umbrella Policy?

An umbrella policy protects your existing personal assets and future personal assets (like wages, your inheritance or that lottery you’re planning to win) against the cost of losing a lawsuit over a car accident or an accident on your property, says Investopedia.

What does it Cover?

Put simply, this coverage picks up the slack where your other policies leave off. If someone was to have an accident on your property, such as slipping on your walkway, falling down stairs, crashing a vehicle, etc., then the umbrella policy would provide the additional financial assistance to settle these costs without going after your assets. If you’re sued, it will also cover the legal expenses you incur. What’s more, depending on the coverage you choose, this policy could even provide financial assistance if you were forced to be in court and miss days from work.

Lastly, umbrella coverage extends to your dependents, such as children. This policy covers any accidents caused by you or your dependent children while operating a watercraft, accidents that occur on rental property you own and personal injury lawsuits arising from slander, libel, defamation of character, false arrest, detention or imprisonment, abuse of process, malicious prosecution, shock/mental anguish and possibly more, says the article.

What it Doesn’t Cover

Bear in mind, however, that umbrella insurance is intended for personal protection only. This means that if a business discrepancy happens, you’ll have to depend on your business owners’ policies instead. Further, it doesn’t cover reckless activities that put you or your property in unnecessary danger such as drag racing or driving under the influence- any crime related activity is not covered.

At Tri-State Insurance Agency, we want to ensure the safety of your assets. Our specialty coverage for high-net worth individuals seeks to protect your valuable assets and multiple properties to give you peace of mind with adequate coverage. For more information, call us today at (888) 990-0526.

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