An umbrella insurance policy is extra liability coverage that can help protect you from costly lawsuits and other damages. It can cover expenses like medical bills, legal fees, and property damage. Umbrella insurance is sometimes called excess liability insurance.
While umbrella insurance might not be necessary for everyone, it can be a good idea if you have a lot of assets, such as a home, a boat, or a rental property. It can also be a good idea if you’re at risk for being sued, such as if you have a high-paying job or are involved in dangerous activities.
How Umbrella Insurance Works
Umbrella insurance is designed to provide extra liability coverage above and beyond the limits of your other insurance policies, such as your auto or homeowners insurance. It kicks in when you reach the limit of those policies, which can help you avoid having to pay out of pocket for damages.
For example, let’s say you’re sued for $500,000 after causing an car accident that injures another driver. If you have a $250,000 auto insurance policy and a $100,000 umbrella policy, your umbrella policy would cover the remaining $150,000.
What Umbrella Insurance Covers
Umbrella insurance can also be customized to cover a variety of damages, including:
• Medical bills
• Property damage
• Legal fees
It’s important to note that umbrella insurance only kicks in after you’ve reached the limit on any of your other policies.
Assistance with your Umbrella Plan
To create an umbrella insurance plan that adequately protects your assets may require a bit of legwork, but the result will be a policy that offers superior protection at a surprisingly low cost. To learn more about how our team can assist you in creating a policy, call us at the number above and set up your free consultation.
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