What is Umbrella Insurance?
Are you worried about catastrophic financial events or lawsuits? Do you worry that your primary insurance policies won’t cover all the damages? Typically, umbrella insurance is thought of as highly expensive and unattainable for most people. But the truth is, affordable umbrella insurance is possible, and is made to fill in the gaps in your primary insurance to make sure you’re always covered:
What is umbrella insurance?
Umbrella insurance is a comprehensive insurance policy that provides coverage that kicks in after your personal and primary insurance coverage has run out. Not only that, but umbrella insurance covers items not covered in your primary insurance. It’s intended to cover those items which are damaging, sometimes catastrophically so, and make sure that you have the right coverage you need. Some examples are coverage for lawsuits involving owners of rental units, property damage liability, slander, libel, false arrest, and malicious prosecution. It’s an extra layer of protection that goes above and beyond primary insurance.
How does it work?
Here’s an example: If you’re a landlord, you’re going to have your own homeowner’s insurance. But if your tenant’s dog bites another person, you can be held responsible as the landlord even if you have landlord insurance. Umbrella insurance would kick in here, as your homeowner’s insurance wouldn’t always cover this situation. Another example: If you are the cause of a car accident that causes injuries to you and others that totals to be $400,000 and your bodily injury protection limit is $200,000, where does the extra $200,000 come from? That’s when it pays to have a comprehensive umbrella insurance policy.
When do I use my umbrella insurance?
Keep in mind that umbrella insurance is not for minor claims, and will not be the first insurance policy to activate in the event that you need coverage. Your primary insurance, be it home, auto, or boat, is the insurance that will take care of the initial coverage. Umbrella insurance will cover you in the event that a claim or lawsuit made against you is greater than the amount your individual insurance policy covers.
If you want to protect your current and future income, assets or inheritances, umbrella insurance is a smart decision. The Insurance Place can help you find the right umbrella insurance policy for your family, your budget, and your life. Contact the Insurance Place today to get started on your comprehensive umbrella insurance policy.
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