The Pros and Cons of Umbrella Insurance Policies When it comes to selecting insurance policies, many people find themselves at a loss of what to do. One particular area of confusion lies in umbrella insurance policies. Just like everything, there are pros and cons to umbrella policies.
What is an Umbrella Insurance Policy? Before we begin, here is a little explanation of what an umbrella insurance policy is. Umbrella policies are secondary insurance policies that will kick in if primary policies reach their limit or if they don’t cover unusual cases/expenses. They can be handy when unexpected disaster strikes, but if nothing ever does happen, it could end up being an unnecessary expense. So, when it comes to deciding whether or not you need an umbrella policy, an analogy might come in handy. Let’s compare umbrella insurance policies to packing for foreign trip. I don’t know about you, but I consider packing for a long trip and difficult and distressing process. What will I need? What will I want? What would be better to buy over there rather than bringing with me?
Comparing Umbrella Insurance Policies to Packing for a Foreign Trip The answer to most of these questions can be answered by doing a few simple things. First, do your research. If you are going to Salzburg for a winter holiday, look up records of past winters in Austria. How cold does it get? What kind of material will keep the cold, humid air out? Then check the out shopping scene. Are you going to get there and realize everything is better quality, better looking, and better priced than things at home? Will you be tempted to buy your full winter’s wardrobe over there? Be honest with yourself. If shopping is a weakness, only take a few days’ essentials and plan to buy everything else abroad. You will want the space in your suitcase to bring all those clothes and souvenirs back with you. Finally, consider some probabilities. If you are unsure whether you should take your big, fluffy coat with you, think about this. You know it will be cold and your coat is very warm. However, you love shopping and can probably find something to buy in Salzburg. So it would make sense to save the space in your suitcase. But! Are you a picky shopper? How long will it take you to find the perfect European coat? Will you freeze to death before you find the perfect purchase? Weigh these options and go with what you think the most probable outcome will be.
Some Questions to Consider An umbrella policy is like that winter coat. What is the probability that you will need it? What assets do you own or what health problems run in your family that could potentially create a problem in the future? Will your regular policies be enough to cover it? Or will you need extra help? By considering your personal situation and answering questions like these, you should be far better equipped to make the decision of whether or not you need an umbrella insurance policy from Thousand Oaks. Photo Credit: http://www.alturacu.com/personal/savings/deposit-insurance Photo Credit: indianapolisamy.typepad.com