Umbrella Insurance
Protect your financial future with umbrella insurance if coverage costs exceed your limits during a claim.
Photo by John Fornander on Unsplash
Additional coverage for an extra layer of protection.
Umbrella insurance has an unusual name, but it’s a simple concept—it’s an extra liability policy for added peace of mind. It sits "over" your auto and home insurance policies like an umbrella and provides additional coverage if the limits in either of those policies are exhausted.
How does umbrella insurance work?
If your auto policy covers liability up to $500,000 ofr bodily imjury to others, but you cause an accident that leaves the other driver with medical bills of $600,000, your auto policy's limit is insufficient to cover the full liability amount. The umbrella coverage kicks in to help cover the difference. Even if you want tp purchase a higher limit in your auto insurance policy, insurance companies typically offer up to a limit of $1,000,000 at most.
Who does an umbrella insurance policy cover?
If you have umbrella insurance, it may cover members of your immediate family. This means if your chirdren have their own auto poliies their policies will also need to meet the underlying limit requirement which is commonly $250,000/$500,000. Be sure to understand who is covered by your policy amd what the eligibility requrements are.
Do you need umbrella insurance?
Coverage might be more affordable than you might think. The policy itself will have its own limit. While it covers large potential payouts, the premium usually reflects the reduced risk that the policy will need to payout. An umbrella policy is a tool to help your protect your assets.
Are you ready to get additional protection for yourself and your family with umbrella insurance? Contact us to dicuss to discuss umbrella coverage in deeper detail.
