We often joke that Oregonians never use umbrellas, but there IS a case
where you really should use an umbrella–when it comes to your insurance.
Umbrella coverage, also known as excess liability coverage, is not a very
widely known policy, but it can save you a bundle in certain instances.
Umbrella coverage protects you financially in cases of lawsuits with large
damages, and it can also help pay for legal help. Say, for instance, that
you get sued and then are liable for millions of dollars. Chances are
your insurance policy will not cover the full amount. That means the rest
comes directly out of your pocket. With umbrella coverage, you most likely
would be protected.
Umbrella coverage is part of home and automobile insurance, but it is optional,
and just a small percentage of people choose to purchase it. Most don’t
want to pay more than necessary for insurance coverage, especially for
something that might never happen. But that’s precisely what “insurance”
means. So, check your homeowner’s insurance policy and see if you
have umbrella coverage. If you don’t, ask your insurance agent about
it. Better safe than sorry!