ECONOMICAL
SIMPLE
Umbrella insurance: extended protection for you and your belongings
As you get older, it is quite normal to accumulate a few assets and increase your assets, starting with the main residence, a rental investment, some investments and financial products, etc. But what will happen when an incident occurs that endangers one’s heritage? What happens when the insurance policy does not cover the insured’s liability on all of their property and assets?
This is where Assur360 comes in, which makes sure to raise awareness of the need to take out excess liability coverage for individuals. This type of coverage is commonly referred to in Canada as umbrella insurance.
Choosing supplemental insurance for individuals
This insurance has the undeniable advantage of extending civil liability coverage, whether in the context of home or car insurance. In order to better understand the usefulness of such coverage, let’s imagine that a loss has occurred in a second home, for example, and that the value of the damage is estimated at some four million dollars. In the event that home insurance does not cover all the damage caused, it would be wise to have umbrella insurance that allows you to extend the limit of civil liability and better protect your assets and assets.
In the event that the civil liability insurance contract has some shortcomings in terms of clauses or guarantees, it is better to supplement it with umbrella insurance. Indeed, certain exclusions may be noted in the initial contract, in particular moral damages considered as personal injury. This is usually insured by excess insurance policies. Suppose a child falsely accuses another person of sexual assault. In the event of legal proceedings against the child, the insured, i.e. the parent, can spend a fortune on such costs and this is where umbrella insurance comes in, which covers this type of expense.
This insurance is also activated in the event of a lawsuit for mismanagement of an organization managed by the insured voluntarily (NPO). As a result, the guarantees of umbrella insurance even cover the status of volunteer director or officer at a time when other coverages do not cover such incidents.
Affordable umbrella insurance
Contrary to what you may think, umbrella insurance, even if it covers many exclusions, is not only reserved for the wealthy. Indeed, it is accessible to everyone to insure a second home, a recreational vehicle such as a boat, a property used as a rental investment, financial investments, legal proceedings engaging the civil liability of the insured, among others.
Such protection is very useful in many situations and yet it remains very accessible and the rates charged are affordable in terms of the guarantees offered and their degree of coverage. In order to take out tailor-made umbrella insurance, it is always recommended to use a specialized broker who can offer adequate coverage according to the needs and expectations of his client.
* The text is for illustrative purposes only. Your broker will be able to explain to you which insurer’s product best meets your needs.
