Typical liability insurance, such as the kind that might be found in your auto or homeowners insurance policy, only goes so far. Umbrella insurance broadens that coverage, as an umbrella is better for keeping off the rain than a rolled up newspaper. If another person claims that you or your family did damage to them in some way, their damage claim may exceed the limits of typical home or car policies. In some cases, umbrella insurance may also help pay for damage claims that your other policies do not even cover.
HOW DOES UMBRELLA INSURANCE WORK?
To understand how this kind of extra insurance works, consider a simple example. Lots of people purchase just a minimum required by their states liability insurance policy. Even if they purchase a greater amount of coverage, say $30,000 for property damage, it is not hard to visualize an accident with a fairly new car doing more damage than that.
After you have reached the limits of your auto insurance policy, you may have to begin writing checks if you do not have any additional coverage. Most of the time, umbrella policies are an affordable way to protect your own assets against claims of higher damage limits than your base policies contain. These policies may also cover some claims, such as slander, that typical home policies do not. For people with a lot to lose, umbrella insurance is usually considered an affordable way to buy additional liability coverage.
WE CAN HELP YOU BUY THE RIGHT INSURANCE
As independent agents, we want to help you find the right coverage for your own unique family situation. You can access online quotes for your car and home, and we are here to answer questions about finding the right amount of coverage with the best policies for your needs.